According to The Washington Post, the unstable leadership style of US President Donald Trump negatively affects the dollar's exchange rate. This opinion is expressed in a recent article by the publication.
According to data, since Trump's return to the White House in January 2025, the American currency has lost more than 10% of its value. Economist Robin Brooks, who works at the Brookings Institution, predicts that the dollar's decline will continue.
“I expect that this year the dollar could drop another 10 percent,” he noted.
Brooks added that investors are experiencing an “instinctive aversion” to political chaos. He previously held a position at the International Monetary Fund.
The Washington Post points out that the dollar is facing many challenges. After a prolonged period of growth in American financial markets, foreign investors have begun to reassess their assets, reducing dependence on the US and turning their attention to other economies.
Moreover, the rising national debt and persistent budget deficits, which remain even at low unemployment levels, negatively impact the dollar's exchange rate.
The publication emphasizes that the main factor contributing to the dollar's weakness is the “ripple effect” of the inconsistent policies of the Trump administration. This is associated with abrupt changes and sudden reversals of previously made decisions, including issues related to import tariffs and military actions concerning several countries. Many foreign investors find themselves in a state of uncertainty, which adds to their concerns.
One of the indirect signs of declining confidence in the dollar is the sharp rise in gold prices, which have increased by almost 80 percent over the past year.
