The woes for the US dollar have deepened, as it registered its worst first half in over 50 years, falling 10.8% against a basket of currencies. This unprecedented decline is largely attributed to Donald Trump’s tariffs and widespread concerns that his economic policies are undermining the dollar’s traditional safe-haven role. The dollar index now stands at its lowest level since March 2022.
The pound has surged to a three-year high against the struggling dollar. Carsten Brzeski of ING Research characterized the first six months of the year as “action-packed,” citing tariffs, market volatility, and questions about Fed independence. Despite the dollar’s significant struggles, US stock markets, after an early April global sell-off, rebounded strongly, with the S&P 500 reaching a record high by the end of June, highlighting the market’s ability to recover amidst policy uncertainty.
Greenback’s Woes Deepen: Worst First Half in Over 50 Years for US Dollar
