US Dollar Declines Against Major Currencies Amid Trade Tensions
In 2025, the US dollar weakened against eight of the top global currencies, according to Reuters. While Trumps election victory initially strengthened the dollar, his presidency took a different turn as he repeatedly threatened BRICS and other nations with trade tariffs for reducing dollar reliance.
Despite BRICS failing to dethrone the dollar, the currency has struggled due to US-imposed tariffs. The greenback only outperformed the Canadian dollar by a mere 0.1%, while it declined against other major currencies, including the Swedish crown (-8.6%), Norwegian crown (-6.5%), Japanese yen (-6.2%), and euro (-5.7%).
The DXY index, which tracks the dollars strength against a basket of six major currencies, dropped to 103.60, marking a 4.65% year-to-date declinethe sharpest in recent years. From a high of 109.60, the index plunged to a low of 103.20. However, this downturn wasnt caused by BRICS but rather by US policies.
Trumps tariffs have strained economic ties with longtime allies, with European leaders openly calling for reduced reliance on the US. As trade wars escalate, the dollar faces mounting pressure, even as BRICS remains on the sidelines.
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