U.S. Dollar Declines 10% Against Major Currencies in First Half of 2025

U.S. dollar has fallen about 10% against other major currencies since President Donald Trump returned to the White House. S. Dollar Index, which measures the greenback against other major currencies, logged its steepest six-month drop in more than 50 years in the first half of 2025.

The dollar index is still about 10% lower than the start of Trump’s term. A strong dollar makes imports cheaper and can help keep inflation in check, while a weak dollar can increase prices on foreign goods but boost American exports. S.

At a disadvantage and that a weak dollar helps American industry. Corporate earnings calls in recent months have included talk of how a weaker dollar has helped companies including Philip Morris and Coca-Cola. InterContinental Hotels announced higher profits and revenues on the February call.

For big multinational companies that do business overseas, a weaker dollar can spur sales for products that suddenly become cheaper. S. businesses are not operating beyond the border.

Travis Madeira founded the lobster-shipping business LobsterBoys with his brother. Travis Madeira, a fourth-generation lobsterman, makes about 80% of his sales to Americans. Travis Madeira is paying more to import bait and buy Canadian lobsters.

David Navazio is CEO of Pennsylvania-based Gentell, which makes bandages and other medical supplies. Gentell operates plants in Brazil, Paraguay, Canada, New Zealand, and the United Kingdom. In each of Gentell's locations, the dollar has fallen, increasing Gentell’s costs.

Gentell has had to raise some prices to reflect the currency fluctuation. The dollar is about 16% weaker versus the peso compared with early 2025. Mexico is the top foreign destination of Americans.

Declines of about 10% to 17% have been recorded against the Swiss franc, South African rand, Danish krone, Swedish krona, and the Euro. Only about 5% to 10% of a currency dip is passed on to consumers. S.

The dollar has fallen around 13% versus the Brazilian real. S. in the past year, according to government data. The dollar has reached lower levels at points in the presidencies of each of Trump’s predecessors, back through the creation of the Dollar Index in 1973, when Richard Nixon was president.

Kenneth Rogoff is a Harvard University economist and former chief economist at the International Monetary Fund. Kenneth Rogoff says commodity prices are likely to rise, particularly with the impact of the Iran war on fuel prices.