How This Administration's Governing Style Is Impacting the Value of the U.S. Dollar

Fallout from the recent Greenland crisis clipped the U.S. dollar, aggravating a year-long decline that has shaved more than 10 percent off the greenback's value since President Donald Trump returned to the White House in January 2025.

The dollar is under pressure on multiple fronts. After a long period of U.S. financial market outperformance, many foreign investors are rebalancing their portfolios to reduce excessive exposure to the United States and to capitalize on improving prospects elsewhere. Washington's failure to address its mounting public debt, including crisis-level annual budget deficits at a time of low unemployment, is not helping.

But perhaps the key to the dollar’s drop is the ripple effect of the president’s erratic policy-making, including abrupt stops and starts with tariffs and military action against a lengthening list of countries. After more than a year of nonstop upheaval emanating from the White House, many foreign investment managers are exhausted.

Please select this link to read the complete article from The Washington Post.