Will the US dollar remain under pressure or will the trend reverse?

The year 2025 has so far been characterized by extremely poor performance of the US dollar. Since the beginning of the year, the US dollar has lost more than twelve percent of its value against the euro – a magnitude rarely seen in recent decades. For investors in the Eurozone, this sharp depreciation of the US dollar has tangible and unpleasant consequences: US investments lose value when the dollar weakens.

The reasons for the US dollar's depreciation this year are complex, but can essentially be traced back to a loss of confidence in the greenback. Donald Trump's erratic political style, his attacks on the rule of law, and his attacks on the independence of the US Federal Reserve unsettled many investors. Fundamentally, however, the US dollar's weakness is difficult to justify.