In 2025, the US dollar suffered its largest annual drop in eight years. While some in the Trump administration continue to insist the White House believes in maintaining a “strong dollar,” investors don’t appear to be convinced.
Even with a rally in recent days, the dollar index (DX-Y.NYB) remains down about 1% from where it started the year, adding to the 9% drop seen in 2025.
“Fundamentally, we think the recent injection of policy uncertainty will be sufficiently durable to keep the Dollar from making up lost ground,” foreign exchange strategists at Goldman Sachs wrote in a recent client note.
“Investors came into the year expecting more support for the economic cycle, but instead a series of new tariff threats have shaken those expectations.”
In the days after President Trump first announced his “Liberation Day” tariffs last April, the US dollar, long the…
