The US dollar has suffered from the worst beginning to a year since 1973

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The US dollar has been heading to the worst first half of the year since 1973, as Donald Trump’s policies pushing trade and economic for global investors to rethink their exposure to the dominant currency in the world.

The dollar index, which measures the strength of the currency against a basket of six others, including the pound, the euro and the yen, has declined by more than 10 percent so far in 2025, the worst beginning throughout the year since the end of the Bretton Woods regime supported by gold.

“The dollar has become the Streaming boy of Trump 2.0’s wrong policies,” said Francesco Bezol, a strategic expert in GNG.

Stop TatroveHe added that the extensive needs of borrowing and anxiety over the independence of the federal reserve had undermined the resumption of the dollar as a safe haven for investors.

The currency fell 0.5 percent on Monday with the American Senate’s willingness to start Voting to amendments To the Trump tax bill “large and beautiful”.

Landmark legislation is expected to add $ 3.2 trillion to the American debt stack during the next decade, and fears were fueled by the sustainability of Washington’s borrowing, which sparked a departure from the US Treasury Market.

the dollarThe sharp decrease in its course puts it on the worst of the first half of the year since a 15 % loss in 1973 and the weakest of any period of six months since 2009.

The currency slice has linked large -scale forecasts at the beginning of the year that Trump’s trade war will lead to greater damage to the economies outside the United States while fueling American inflation, which strengthens the currency against its competitors.

Instead, the euro, expected by many Wall Street banks that will decrease to equal with the dollar this year, increased by 13 percent to $ 1.17, as investors focused on the risks of growth in the world’s largest economy – while the demand for safe assets increased elsewhere, such as German ties.

“I was shocked in terms of liberation day, in terms of US policy,” said Andrew Bulls, the chief global investment of global income in the Bimco Group, referring to the declaration of “mutual tariffs” in April.

The balls argued that there was no major threat to the situation of the dollar, as the realistic currency in the world. But this “does not mean that you cannot get a significant weakness in the US dollar,” as he added, with a highlight of a shift between global investors to undermine more of their exposure to the dollar, which is the activity that is in itself to less.

It was also the payment of the low dollar this year Increasing expectations The Federal Reserve will reduce interest rates more strongly to support the American economy-which Trump urged-with no less than five discounts, five points expected by the end of next year, according to the levels involved in future contracts.

Bets helped us low rates to store trade war and conflict in the Middle East to reach record levels. But the weakest dollar means that the S&P 500 continues to delay competitors in Europe when the returns are measured in the same currency.

The large investors of pension funds mentioned the reserve managers of the Central Bank, their desire to reduce their exposure to the US dollar and assets, and they wondered whether the currency continues to provide a haven of market fluctuations.

“Foreign investors need more hedge from the assets offered by the dollar, and this was another factor that prevents the dollar from following the recovery of American stocks,” said Bizol.

gold It also achieved record levels this year on the continued purchase by central banks and other investors who are concerned about the low value of their assets in dollars.

The decline in the dollar has reached the weakest level against competing currencies for more than three years. Looking at the speed of decline, the popularity of the stakes in the dollar, some analysts expect the stability of the currency.

“The dollar has become the weakest dollar crowded and I think the decline will slow down,” said Zurich’s chief market expert in Zurich.