USD suffers worst 100-day performance since 1973 under Trump

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02-05-2025 14:07

USD suffers worst 100-day performance since 1973 under Trump

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USD suffers worst 100-day performance since 1973 under Trump

The US dollar is in free fall, and President Donald Trump appears unfazed by its rapid decline. In fact, many analysts believe the White House has actively contributed to the dollar’s collapse. The greenback is struggling, and there could be more pain ahead.

According to Bloomberg, President Trump has led the dollar to its worst performance in 52 years. The first 100 days of his presidency have been marked by market volatility and a sharp drop in the dollar’s value. And the worst may still be to come.

Between January 20 and April 25, 2025, the US Dollar Index (DXY) tumbled nearly 9%, marking the steepest decline during the opening 100 days of any presidency since Richard Nixon, when the United States abandoned the gold standard and shifted to a floating exchange rate system.

Historically, the first 100 days of a new US president have usually supported a stronger dollar. From 1973 to 2021, the average return on the dollar during this period was +0.9%. However, Trump’s aggressive global trade war has changed everything, triggering an investor exodus from US assets and the greenback’s weakening.

Instead, money has flowed into alternative assets, pushing up the value of gold and strengthening other major currencies. The euro, Swiss franc, and Japanese yen have each appreciated by around 8% against the dollar during this time.

Adding to the pressure, Trump’s political agenda has heightened fears of a US recession, combined with renewed inflation risks. As a result, markets are increasingly pricing in the possibility of a Federal Reserve rate cut, though the timing remains uncertain.

By mid-April, financial media reported that Trump’s unpredictable policies had begun to frighten global investors, many of whom are now avoiding dollar-denominated assets altogether.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Forex humour