According to Bloomberg, the US dollar is experiencing its worst month in over a year amid concerns over President Trump's tariff policy, disappointing economic data, and fading hopes for further stimulus.
The Commodity Futures Trading Commission noted that investors shifted from a bullish stance on the dollar in January to betting against it in March. By mid‑March, traders had become decidedly bearish on the US currency.
Bloomberg reports that the dollar index has dropped 2.2% this month — its steepest decline since November 2023.
Specialists at Barclays Bank have revised their forecasts for a strengthening US dollar, citing a slowdown in the US economy and rising hedging costs. The increase in hedging costs comes after the postponement of duties on Canadian and Mexican imports and in anticipation of potential non‑tariff measures against 15 other countries.
Meanwhile, Citigroup currency strategists predict a weaker dollar over the coming year, citing risks stemming from public‑sector layoffs and immigration restrictions.