Currency traders from Tokyo to New York unleashed a selloff last month that drove the US dollar into its deepest slide since President Donald Trump began his global trade war last April.
At the heart of the dive has been Trump’s combative approach to policymaking.
His second term in office has witnessed an almost 12% tumble in the Bloomberg Dollar Spot Index to around its lowest since 2022.
Trump’s unpredictable tariff salvos, his unprecedented effort to pressure the Federal Reserve into cutting interest rates and his military threats against friend and foe alike have led many investors to pull back their dollar exposure.
The massive US national debt, along with Trump’s militarized immigration dragnet and its resulting political destabilization haven’t helped, either.
Also lurking in the background is the US president’s seeming desire for a weaker currency that would theoretically make American products cheaper overseas.
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