The country’s dollar, which threatened to charge a 50% commercial fee on the European Union during a new chapter in the tariff war promoted by US President Donald Trump, faces a disadvantageous scenario.
And, according to Bloomberg data, the value of US currency has even collapsed. Lowest level since 2023growing concerns about the country’s fiscal deficit, affected by commercial tensions.
he Bloomberg Dollar Spot Index (Dollar to Cash Index), an indicator that measures dollar performance against international coin baskets. It fell to 0.8% On Friday, May 23rd, we accumulated losses of over 7% since the beginning of 2025.
At the moment, this article has been drafted and its index shows that the dollar price has recorded a decline of less than 1,220 points, as seen in the following graph.
This descent is the fourth day fall of the last five times, an eloquent reflection of pressure facing the currency. According to a Bloomberg report, it poses the threat of imposing Trump’s recent tariffs not only on the European Union, but also on companies such as Apple Inc. Reverse concerns have been strengthened The impact of these commercial policies on the world’s largest US economy.
The negative sentiment is testimony from Wells Fargo director Anoop Chatterjee, who warned that a significant increase in import duties from the European Union “may increase the risk of a US recession, in addition to causing economic and political uncertainty.”
To clarify the situation, US Treasury Secretary Scott Besinto said he would not consider the dollar as a weak currency. According to Besent, the recent trend in the currency market has been Thanks for other currencies More than the inherent weakening of the dollar.
However, officials said the US could close key trade agreements in the coming weeks. They were unable to reverse the bassist trends Dollar prices.
In that sense, Helen emphasized that Monex, the operator of the Forex institution, could make a comment on Venent. Fed speculation The Trump administration would have been “looking for a weaker dollar policy” to that currency.
The market expects a hostile attitude compared to the US dollar.
Additionally, the second graph created by Bloomberg shows the evolution of the net position of US dollar futures (blue territory) by nonprofit operators, i.e., institutional investors and speculators, who do not use these contracts to cover themselves using these contracts, but instead bet on the future direction of the currency.
Based on data from the US Future Trade Commission (CFTC), the current situation is These investors’ positions have returned to negative landswhich reflects new market skepticism regarding the future performance of currency.
This trend is consistent with a decline in the dollar, suggesting that investors are redirecting capital towards alternative assets in the context of macroeconomic uncertainty and changes in monetary policy.
In addition to the tensions that stem from commercial policy, the dollar faces internal challenges. The US Senate is currently analyzing a tax bill that Trump has promoted. Increased debt roof To avoid government violations that could be realized between August and September 2025.
The project already has approval from the country’s parliamentary members; Federal deficits could increase It creates uncertainty among investors “for hundreds of millions of dollars a year.”
