Greenback’s Grim Reality: Worst Half-Year in Over Five Decades

The US dollar is confronting a grim reality, having experienced its worst half-year performance in over five decades. A 10.8% decline against a basket of currencies since January is directly linked to Donald Trump’s economic policies, including his tariffs and a budget bill that analysts fear will significantly increase the national debt, diminishing the dollar’s safe-haven status.
Unicredit analysts confirm the dollar’s 10% loss, while the euro has gained 5%. Rising expectations of US interest rate cuts, pushed by Trump’s critiques of the Federal Reserve, have also contributed to the dollar’s vulnerability. Despite this, the S&P 500 of US stocks remarkably rebounded to a record high by the end of June, suggesting that while the currency faces headwinds, other segments of the market are finding strength, particularly in technology and AI.