Overview

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Since the beginning of 2025, a number of factors have combined to reduce the value of the US dollar against other currencies. The US Dollar Index, which tracks the Gold prices climbed above the $2,170 mark and Bitcoin breached the $72,000 level this week. While all possible assets are skyrocketing in price, the U.S. dollar is The U.S. dollar edged up from levels close to its 11-week low on Wednesday as U.S. Treasury yields bounced back after recent declines amid weak economic data and 1442 GMT – The Federal Reserve is expected to leave interest rates on hold Wednesday, a decision which is unlikely to provide the U.S. dollar with much support Since late 2025, Stephen Jen, chief executive and co-chief investment officer of Eurizon SLJ Capital, has been warning about the possibility that the U.S. dollar could be In this week’s installment of “Three on Thursday,” let’s explore some of the dynamics surrounding the United States dollar. In an era of inflation, massive debt, large The US Dollar remains stuck on the backfoot and is unable to recover against the major peers. ECB's Lagarde props up concerns by saying the ECB will need to be vigilent The U.S. Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, fell 2.55% over the last week. The dollar dropped to its

Why the US Dollar Remains Depressed This Week: Factors and Future Outlook

The US dollar remains stuck on the backfoot this week, unable to recover against major peers. This trend continues a decline that's been observed since the beginning of 2025. Understanding the reasons behind this requires examining several key factors.

Factors Contributing to the Dollar's Weakness

A number of dynamics are contributing to the current situation. Since the beginning of 2025, a number of factors have combined to reduce the value of the US dollar against other currencies. These include:

  • Weak Economic Data: Recent weak economic data has put downward pressure on the dollar.
  • U.S. Treasury Yields: Although the U.S. dollar edged up from levels close to its 11-week low on Wednesday as U.S. Treasury yields bounced back after recent declines, this bounce might be temporary.
  • Federal Reserve Policy: The Federal Reserve is expected to leave interest rates on hold Wednesday, a decision which is unlikely to provide the U.S. dollar with much support.
  • Inflation and Debt: In an era of inflation, massive debt, and large deficits, the dollar faces significant headwinds.

The US Dollar Index (DXY) and Other Asset Classes

The U.S. Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, fell 2.55% over the last week. The dollar dropped to its lowest levels in some time, indicating a broad-based decline. Meanwhile, Gold prices climbed above the $2,170 mark and Bitcoin breached the $72,000 level this week. While all possible assets are skyrocketing in price, the U.S. dollar is struggling to maintain its value.

Expert Opinions and Future Predictions

Experts like Stephen Jen, chief executive and co-chief investment officer of Eurizon SLJ Capital, have been warning about the potential for dollar weakness. Since late 2025, Stephen Jen, chief executive and co-chief investment officer of Eurizon SLJ Capital, has been warning about the possibility that the U.S. dollar could be facing long-term challenges.

ECB Vigilance and Global Factors

Concerns raised by figures like ECB's Lagarde also play a role. ECB's Lagarde props up concerns by saying the ECB will need to be vigilent, indicating a focus on maintaining stability within the Eurozone, which can indirectly influence the dollar's trajectory.

In this week’s installment of “Three on Thursday,” let’s explore some of the dynamics surrounding the United States dollar. Further analysis is needed to understand the long-term implications of these trends.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making any investment decisions.

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