US Dollar Continues to Weaken Due to Trump's Policies

The US dollar, which started a downward trend last year, is likely to continue weakening due to the loss of confidence in the economic and geopolitical policies of US President Donald Trump. Analysts believe that the US president cannot be interested in losing dominance in the financial system. However, his trade policy has already led to increased dollar sales. Trump threatened to raise tariffs on South Korea from 15% to 25% for not complying with last year's agreement. As a result, investors are now seeking 'safe havens' not in traditional currencies, but in precious metals and stocks. Experts suggest that Trump's actions may indicate his desire for a weaker dollar to boost US exports. The euro began to rise at the beginning of the week due to rumors of potential US intervention, which first disrupted the economic and then the geopolitical order. In response to Trump's immigration policy, which has already led to deaths, Senate Democrats have said they will block government funding. Tensions with Venezuela have also negatively affected the dollar. Nevertheless, the yield on US Treasury bonds remains stable, as investors are not overly concerned about the loss of the Federal Reserve's independence and have even increased demand for these bonds. However, UniCredit's head of strategy, Luca Cazzulani, sees this as a medium-term risk. The potential for the Federal Reserve to cut interest rates this year is also contributing to the dollar's depreciation. US Treasury Secretary Scott Bessent has pledged a 'strong dollar policy,' but his words have failed to halt its decline. Meanwhile, Trump told Fox News that he 'likes' the dollar's weakness. His economic advisor, Larry Kudlow, later clarified that the administration does not seek to weaken the national currency. Overall, the start of 2026 has been marked by high political and economic uncertainty, prompting investors to flee to tangible assets.