The Bloomberg Dollar Spot Index recorded a significant decline of 1.7% since last week’s close, marking its worst weekly performance in the last 18 months. The last time such a significant drop was seen was in July 2023, coinciding with the end of the Federal Reserve’s monetary policy tightening cycle.
Forex traders have faced an abundance of talk about tariffs from President Donald Trump, but with no concrete action taken. This contributed to the weak performance of the dollar this week.
The decline in the value of the world’s reserve currency continued through the end of Thursday, following President Trump’s apparent softening of his stance on tariffs toward China. This marks a significant change in the currency market, with the Dollar Spot index recording its biggest weekly decline since mid-2023.
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