Overview

• The US dollar has slid roughly 12% in the first half of 2025, reaching its lowest point since 1973 as the euro and yen rally.
• Investors cite President Trump’s sweeping tariffs and widening fiscal deficits for undermining US growth prospects and currency demand.
• Foreign capital is shifting out of US stocks and bonds into European and other markets in search of policy stability.
• Traders are gearing up for a July 9 tariff deadline while awaiting second-quarter trade figures and signs of potential Federal Reserve rate cuts.
• A weaker dollar is boosting US export competitiveness but is also raising import prices, travel costs and inflation risks for American consumers.