US dollar has worst first half in 50 years amid tariff chaos

The US dollar has had its worst first half-year in more than 50 years, as the financial markets over the last six months were dominated by geopolitical crises and Donald Trump's trade war.

- Graeme Wearden

The dollar has fallen by more than 10% against a basket of currencies since the start of 2025. That is its worst performance over the first six months of any year since 1973, and the worst half-year since the second half of 1991. This sell-off has pulled the dollar index down to its lowest level since March 2022, and lifted the pound to a three-year high of $1.37, up from $1.25 at the start of the year.

Investors have been selling the US currency owing to concerns that Trump's economic policies threaten the safe-haven role of dollar-denominated assets, with economists predicting that the president's "big beautiful" budget bill will drive the US national debt even higher.

David Morrison, a senior market analyst at the financial services company Trade Nation, said: "Trump's tariffs, the fact that many investors view his administration as somewhat chaotic, along with concerns over US national debt have seen the dollar fall out of favour."