The United States dollar has had its worst first six months of the year since 1973, as President Donald Trump’s economic policies have prompted global investors to sell their greenback holdings, threatening the currency’s “safe-haven” status.
The dollar index, which measures the currency’s strength against a basket of six others, including the pound, euro and yen, fell 10.8 percent in the first half of 2025.
President Trump’s stop-start tariff war, and his attacks that have led to worries over the independence of the Federal Reserve, have undermined the appeal of the dollar as a safe bet. Economists are also worried about Trump’s “big, beautiful” tax bill, currently under debate in the US Congress.
The landmark legislation is expected to add trillions of dollars to the US debt pile over the coming decade and has raised concerns about the sustainability of Washington’s borrowing, prompting an exodus from the US…
