Dollar: Worst first half since 1973

The US dollar just posted its worst start to a year in more than half a century.

- WILSON SY

The dollar index (DXY) has plummeted by 10.7 percent in the first half of 2025 — its steepest decline since 1973. This wasn't an isolated event but a culmination of trends we've chronicled since early this year in a series of articles noting the gradual erosion of US exceptionalism. Refer to our articles: US exceptionalism falters as markets tumble — March 17, 2025; Liberation Day becomes liquidation day — April 7, 2025; Warnings from finance titans — April 14, 2025 and Has the US dollar peaked? — April 28, 2025.

Currency performance in 1H 2025

The magnitude of the dollar's decline becomes even more evident when viewed against major trading partners. The euro, Swiss franc and Japanese yen posted double-digit gains in the first six months of the year, signaling a shift in global capital away from the greenback. Also making headline news is the historic rise of the Taiwanese dollar, up by 12.2 percent against the greenback. We wrote about the challenges of its strength in Dilemma of strong Asian currencies — May 12, 2025.