U.S. Dollar Records Worst First Half in 50 Years...Impact of Trump Tariffs

Source
JH Kim

Summary

  • It was announced that in the first half of 2025, the value of the U.S. dollar saw its worst decline in 50 years.
  • It was reported that alongside the fall of the U.S. Dollar Index, the British Pound Sterling reached its highest level in three years.
  • Market experts assessed that U.S. economic and trade policies are negatively affecting the dollar’s credibility, with further potential weakness possible.

The value of the U.S. dollar in the first half of 2025 recorded its worst decline in 50 years.

According to The Guardian on the 30th (local time), since the beginning of this year, the U.S. dollar has fallen by more than 10% against major global currencies. This marks the worst drop in the first half since 1973, and the biggest half-year decline since the second half of 1991.

The main reasons for the dollar's weakness have been identified as President Donald Trump’s tariff policies and heightened geopolitical uncertainty. Concerns are spreading that, due to the Trump administration’s high-intensity trade policies, the dollar is no longer properly fulfilling its role as a safe asset.

In fact, the U.S. Dollar Index, which represents the value of the dollar, hit its lowest level since March 2022, while the British Pound Sterling has risen from $1.25 at the start of the year to $1.37, reaching its highest level in three years.

Market experts evaluated that “U.S. economic and trade policies have had a negative impact on the international credibility of the dollar,” and added, “The possibility of further dollar weakness cannot be ruled out.”

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JH Kim

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