The US dollar has shown the worst performance among all major global currencies in 2025. The dollar index has fallen 10% since the beginning of the year.
Experts identify two main factors behind the weakening. First, the Federal Reserve's policy, which saw multiple interest rate cuts make holding assets in dollars less attractive. Second, Trump's tariffs created uncertainty in the markets, which negatively impacted the exchange rate.
Who benefited from the weakening dollar?
Exporters. US goods have become cheaper for foreign buyers. In the first nine months of the year, exports grew by 5% ($125 billion). Also, if export-oriented industries thrive, this leads to the creation of new jobs in manufacturing and agriculture.
"When we have a strong dollar... that sounds good. But you can't sell tractors, you can't sell trucks, you can't sell anything," Donald Trump said in July.