"The U.S. economy was growing at an annualized rate of 4.4% last year (the most recent period for which we have a GDP number), and inflation is in decline. The stock market is up nearly 12% over the last 12 months. On paper, that would suggest investors ought to have strong confidence in the U.S. dollar. Yet the opposite is true. The U.S. dollar remains in decline."
"It's down 9.4% over the last 12 months and was down nearly 10% for 2025, as measured against a standard basket of foreign currencies. There are ups and downs, of course. But the greenback has been trending down since 2022. The dollar has lost 8% of its value against the British pound over the last 12 months-which is shocking because U.K. annual economic growth (1.3%) is anemic compared to its American cousin."
The U.S. economy grew at an annualized 4.4% last year while inflation declined and the stock market rose nearly 12% over the past year. Despite these fundamentals, the U.S. dollar has weakened, down about 9.4% versus a standard currency basket and down nearly 10% for 2025, with a broader downtrend since 2022. The dollar lost roughly 8% against the pound and nearly 12% versus the euro, while European equities have outperformed U.S. stocks. A persistent "Sell America" trade and rising unemployment with weak hiring are creating pressure that could prompt the Federal Reserve toward easier policy.
Read at Fortune
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