The U.S. dollar is in steep decline—marking its worst performance in over half a century.
Down 10.7% against a basket of major world currencies, the greenback just posted its sharpest first-half drop to a year since 1973. Back then, Richard Nixon was still president and the Vietnam War was ongoing.
That historic 1973 drop came as the U.S. abandoned the gold standard and allowed the dollar to float freely rather than tying it to gold prices. Today, the dollar is facing a different mix of pressures—but the outcome may look similar.
According to analysts and currency traders, the dollar is heading into the second half of the year under a cloud of uncertainty: erratic policy decisions, tariff-related market turbulence, ballooning debt and deficits, and a possible rate cut by the Federal Reserve are all weighing it down.
Some market watchers say the dollar’s fall is more than just economic—it reflects a wider erosion of global confidence in the U.S.
The slide began in mid-January, right before President Trump’s second term began, and has continued steadily since. While a weaker dollar does make U.S. exports more competitive—something that could help American companies amid ongoing trade battles—there are deeper worries building.
With the national debt nearing $30 trillion and a projected 2025 deficit of $2 trillion, economists warn that the era of unquestioned U.S. economic dominance—and the dollar’s special status—may be on shaky ground.
