Greenback’s Woes Deepen: Worst First Half in Over 50 Years for US Dollar

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.