Dollar experiences steepest one-week drop since July 2023

Investing.com — The Bloomberg Dollar Spot Index has seen a significant decrease of 1.7% since the close of last week, marking its worst performance in a week for the past 18 months. The last time such a steep drop was observed was in July 2023, coinciding with the end of the Federal Reserve’s monetary policy tightening cycle.

Currency traders have been dealing with an abundance of tariff-related discussions from President Donald Trump, but without any concrete actions being taken. This has contributed to the dollar’s weak performance this week.

The decline in the value of the world’s reserve currency continued into late Thursday, following President Trump’s apparent softening of his stance on tariffs against China. This marks a significant shift in the currency market, with the Dollar Spot Index recording its sharpest one-week fall since mid-2023.

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