The Current State of the U.S dollar

As of right now, the U.S economy is experiencing a plummet. It is a financial downturn, some go as far as to compare it to the one in 2008, and only seems to be

getting worse… right? Well for starters, it is nowhere near as bad as the economic turmoil we experienced in 2008, but let's look deeper. The U.S dollar is influenced by a number of factors other than the U.S economy, including global risk sentiment and monetary policy. The U.S. Dollar Index (DXY) ranges between 100.51-101.94. What does this number mean? Well the U.S Dollar Index measures the value of the U.S dollar relative to a “basket” of other foreign currencies, and the value of DXY goes up as we see trends of growth and strength in the U.S economy. 101.94 is actually somewhat higher than the dollar value during a low in 2021, where the dollar was valued closer to 90. 

So now that we know where the value of the U.S dollar currently stands, what factors have been affecting this value and its decrease from the end of 2024, and will it get worse or better?

The United States dollar has seen a fall after the rise of tariffs on imported goods from countries all over the world. It is too soon to say whether or not these tariffs will ultimately impact or harm the U.S economy, but as of right now, uncertainty in global markets and retaliatory tariffs and slowed economic growth. As a result, investors in the U.S dollar and the stock market as a whole are wary, and the economy is experiencing a decline, but only time will tell where the U.S dollar and economy goes from here.