Dollar derailed: Worst start since 1973
The U.S. dollar has declined over 10% in the first half of 2025 — its weakest start to a year in more than five decades. Analysts attribute the drop to heightened fiscal concerns, elevated debt levels, and uncertainty around future Fed policy.
Investors are pivoting to perceived safe havens like gold and European bonds, while expectations of interest rate cuts continue to weigh on the dollar. Even as U.S. equities hit new highs, gains appear softer when viewed through a weakening currency lens. While the dollar’s role as a global reserve remains intact, further downside may be limited as bearish sentiment begins to peak.
Source: https://www.ft.com/content/59c07f63-3331-462b-b9e3-d1bcaea69fce
