The US dollar value is currently at stake as the world is now swiftly turning its attention towards the safe haven assets. The USD index is now hitting its lowest, with anti-dollar assets such as gold and silver continuing to shake the world with their new all-time highs. Why is the US dollar falling so rapidly? Here are three primary causes driving the US dollar fall at present.
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Three Main Reasons Fueling The US Dollar Fall
1. Trump’s Nonchalant Attitude Towards the Dollar
The US dollar value has been plunging for the last 12 months. From trading above 100 on the DXY index to dropping to 95, the dollar is going through hoops, all distressed. However, in a recent interview, Trump was asked about the current dollar condition, to which he responded that the “dollar is doing great.” This nonchalant reaction, especially at a time when the US dollar is not doing so great, has sparked another bearish momentum for the dollar to explore at the moment.
“Most people don’t realize what Trump just said. For 12+ months, the US dollar has been in a sharp decline, falling -10% in 2025 in its worst year since 2017. Minutes ago, for the first time, President Trump commented on the decline in the USD. “The value of the dollar is great,” Trump said. This immediately sent the US dollar another -1% lower, to its lowest level since February 2022. Why? It’s a clear signal that President Trump is willing to tolerate a weaker dollar to push rates lower and boost US exports. Own assets or be left behind.”
2. Interest Rate Cut Decisions Battering The USD
Amid other things, the US dollar value is also quite sensitive towards the rising rate cut speculations. The US monetary policies have always had a stark impact on the US dollar value. In the middle of this, Trump’s push to remove Powell, alongside pushing the Federal Reserve to cut rates, is always bearish for the dollar, as it makes the USD-denominated assets appear less lucrative for trading.
3. Safe Haven Assets Taking The Lead
The world order has now shifted towards favoring safe haven assets such as gold and silver, with macro risk-off sentiments like crypto shifting into a corner. With the warlike narratives rising hard and fast, the world is now pivoting towards dependable assets like gold, causing the US dollar value to plunge even more.
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