Dollar continues to fall to new lows this year due to US trade policy

Bloomberg reports that the greenback continued to weaken for the fifth consecutive day, despite the delay in imposing US tariffs on imports of some electronics. Additionally, the gauge of the dollar volatility remains near a record high level over the past two years.

On Monday, the Bloomberg Dollar Spot Index fell 0.4% after declining 2.4% a week earlier amid escalating trade tensions between the US and China and concerns about slower growth of the world economy. As a result, the index reached a new low in 2025, the agency says.

According to a Bloomberg poll, investors intend to reduce the share of US assets in their portfolios even after Donald Trump's tariff pause announcement.

Dane Cekov, a strategist at Sparebank 1 Markets AS, believes a sustained greenback rally requires a settlement of trade tensions before the US economy faces long-term negative consequences. The dollar is expected to decline further in the coming months. At the same time, the impact of import duties will be reflected in the country's economic data, such as inflation, consumption, and labor market figures, the expert adds.