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The US dollar is experiencing its worst moment in over 50 years. Between January and June of 2025, the currency has fallen by more than 10% against the major currencies of the world.
To find a similar decline, one must go back to 1973, when the United States severed the link between the dollar and gold, marking the end of the Bretton Woods system, according to data collected by The New York Times and Financial Times.
This time, however, the main cause would not be a change in the monetary system, but rather the policies of President Donald Trump, according to several economists and experts who agree on this point.
What is causing the decline of the dollar?
The weakness of the dollar is no coincidence. It has a specific name: Donald Trump and his erratic and aggressive economic policies.
The New York Times points out that the currency "has continued to decline despite President Trump backing away from his tariff threats."
Add that the current decline is due to the "aggressive tariff push and a more isolationist foreign policy" of the White House, which has affected global confidence in the US dollar.
Since Trump returned to power, he has promoted new trade wars, publicly attacked the Federal Reserve, and approved a massive increase in public spending.
All of this has sown doubts among investors about the future stability of the United States.
“The dollar has become the scapegoat for the erratic policies of Trump 2.0”, explained Francesco Pesole, strategist at ING, to Financial Times.
Some analysts believe that this decline is not only a result of Trump's decisions, but could also be part of a deliberate strategy to weaken the dollar.
Why? Because a cheaper dollar benefits U.S. exporters and makes imports less attractive, which aligns with the president's protectionist vision.
Analyst Andreas Steno Larsen summarizes it this way: "A US dollar that is 20% to 25% weaker could solve all of Trump's problems."
In his opinion, Trump employs an "intermittent" strategy for negotiation: he issues strong threats and then backs off. This tactic creates instability and impacts the value of the dollar.
According to ElEconomista.es, this stance has “deeply resonated in the markets and is intentionally affecting the dollar.”
Less international confidence, more internal problems
Meanwhile, foreign countries and funds are ceasing to purchase dollar-denominated assets.
“Foreigners are no longer purchasing enough dollar assets to finance the enormous current account deficit of the U.S.,” says George Saravelos of Deutsche Bank. The troubling part is not that they are selling their dollar bonds or stocks, but that they no longer want to buy more.
Additionally, Trump has promoted a new tax law that will increase the debt by $3.2 trillion over the next decade.
This has raised alarms about the country's financial sustainability and has affected the appeal of the dollar as a "safe haven."
“The Day of Liberation was a shock to the American political framework”, said Andrew Balls of the investment firm Pimco to the Financial Times, referring to the moment when Trump announced new reciprocal tariffs in April.
Is the global role of the dollar in jeopardy?
Although the dollar remains the world’s reserve currency for now, experts warn that its position is weakening.
“Large-scale de-dollarization is still a long way off, but a dynamic is unfolding that could significantly elevate that risk: the increase in public debt,” warned Rick Rieder of BlackRock to The New York Times.
There is also concern that, in times of international tension, the dollar no longer serves as a safe haven.
Even when there is uncertainty, such as in the Middle East or in the markets, the currency continues to lose value, indicating that confidence is eroding.
"The issue is not whether the dollar is weak or strong. The issue is: What is it telling you about how the world views your policies?" warned Steve Englander of Standard Chartered.
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