The US Dollar Index fell 10.8% in the first half of 2025, its worst performance since 1973.

From Yahoo Finance: 2025-07-01 11:35:00

The US Dollar Index fell 10.8% in the first half of 2025 — its worst performance since 1973. The decline is driven by economic and political concerns, impacting import costs and summer travel expenses. The greenback’s bear market trend continues during the summer travel season. Despite the dollar’s weakness, US stock markets hit record highs recently.

The US Dollar Index ended the first half of the year 10.8% lower, worst since 1973. The decline is attributed to the “Sell America” trade amid economic and political worries. Factors like slower growth and fiscal concerns contribute to the dollar’s slide. Analysts link the slump to President Trump’s trade war and pending $3.3 trillion additional deficit.

Pull factors in other parts of the world entice investors away from US assets. The negative USD sentiment persists, with limited respite. Despite the dollar’s decline, US stock markets hit record highs. Investors appear to be hedging, not selling, the US market. A weaker dollar boosts US exports but raises import costs and affects summer travel expenses.

A weaker dollar isn’t all negative for the US, as it benefits exports but raises import costs and could stoke inflation. Summer vacations abroad could become pricier for travelers. The dollar’s decline against major currencies, including the euro and the British pound. Asian currencies have also made gains against the dollar, with the Japanese yen 9.3% higher this year.



Read more at Yahoo Finance: The dollar posted its worst first-half performance since Nixon was president