The US dollar has experienced a marked decline throughout 2025, sparking unease regarding international investors’ faith in the world’s largest economy.
The US dollar index—which tracks the greenback’s value against a basket of six major currencies—fell by 7% during the second quarter alone and has slumped 10.7% year-to-date.
According to figures from Intercontinental Exchange, the first half of this year has been particularly onerous for the currency. The dollar index logged its weakest January-to-June performance since 1973, when it dropped 15% over the same period.
Even as the equity markets have staged a recovery from their April lows, the dollar continues to see accelerated losses. On Monday, the index slipped a further 0.55%, trading at its weakest point since 2022.
European currencies have surged amid the dollar’s retreat. The euro has appreciated by 13% against the greenback so far this year, while the British pound is up 9% over the same period.
On the economic front, Goldman Sachs has revised down its forecast for US second-quarter GDP growth. The bank now projects a 3.6% annualized gain—down 0.3 percentage points from its prior outlook. Goldman’s estimate for Q2 domestic final sales stands at 0.1%.
