Overview

• The U.S. dollar plunged over 10% against major currencies in the first half of 2025, marking its worst midyear performance since 1973.
• Policy volatility around tariffs and U.S. deficits approaching $2 trillion this year have fueled pressure on the greenback.
• Market prices now incorporate anticipated Federal Reserve interest rate cuts later in 2025, adding to downward momentum.
• World Gold Council figures show central banks are acquiring roughly 24 tons of gold per month to diversify reserves away from dollar assets.
• Macro strategists at firms such as TS Lombard are maintaining short dollar positions, betting on further declines.