JPMorgan Asset Management noted that the US dollar defied gravity in 2024, rallying 7% despite three Federal Reserve interest rate cuts. However, the dollar completed its worst first-half return in 52 years in 2025, falling 10.8% by June. The weakening dollar has implications globally, affecting international purchasing power and US companies with revenues denominated abroad. Factors contributing to the dollar’s decline include US economic policy changes, concerns about national debt, and deficits. Analysts predict further dollar weakening, while some expect limited downside due to the US economy’s resilience. Despite uncertainties, the dollar posted its first weekly gain in three weeks.
Read more at Yahoo Finance: Can the Sinking US Greenback Bounce Back?