The dollar index, which measures the value of the greenback against a basket of major world currencies suffered its worst first half of the year since the early 1970s.
This live dashboard continually tracks the dollar’s performance, taking stock of its current standing and charting where it may be headed next.
The Trump Effect
But the dollar isn’t the only currency on the move since Trump rattled global markets by slapping tariffs on trading partners around the globe.
Long-Term View
While the dollar has weakened this year, it remains strong on a long-term basis. While down this year, the dollar index is up 4% over a five-year period, and almost 10% higher over 20 years.
Expert Outlook
Foreign exchange reserves
Central bank reserves are being watched closely for any signs of countries shifting away from the dollar.
The dollar’s share of FX reserves has nudged lower in recent years and currencies such as the euro and yuan are seen as main beneficiaries of the dollar’s woes.
Gold, not represented on this chart, has also seen its share in central bank reserves grow significantly.
Foreign investment
The value of U.S. assets held by foreign investors far has outweighed the assets U.S. investors hold overseas thanks to a long run-up of outside investment that built up the strength of U.S. currency. If the flow of foreign investment were to slow, it could weigh down the dollar.
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Reporting, writing and development by Grant Smith. Editing by Karin Strohecker, Dhara Ranasinghe and Ben Welsh.
Our Standards: The Thomson Reuters Trust Principles.
