The U.S. dollar has had its worst start to a year since 1973, weighed down by President Donald Trump 's frenetic trade policy, a worsening outlook for the country's ever-bloating public debt pile, and fears about the independence of the Federal Reserve.

It has continued to slide even as President Trump has backed down from his tariff threats and the U.S. stock market has recovered from its losses.

The U.S. dollar selloff is nearing a new milestone. The ICE U.S. Dollar Index is headed for its worst first half of a year in at least four decades. It is down more than 10% in 2025, the biggest drop in data going back to 1985,