US Dollar Plunges to Near 10-Year Low

Impact of Trade War and Monetary Policy

The US dollar has experienced a significant decline, reaching its lowest level in nearly a decade. This downturn is primarily attributed to the ongoing trade war initiated by Donald Trump, which has led to a continuous pressure on the dollar's value. The dollar has fallen by over 8% against a basket of major currencies, marking the largest decline since 2017.

Russian Ruble's Surprising Surge

In contrast, the Russian ruble has shown a remarkable surge, emerging as the best-performing currency in 2025. Despite being impacted by the war and heavy sanctions, the Russian economy has seen a surprising rebound, with the ruble strengthening by approximately 45% against major currencies over the past 12 months.

Variations in Dollar's Decline

The decline of the dollar has varied across different currencies within the G10 group, ranging from a 0.7% decline against the Japanese yen to a 16.8% decline against the Swedish krona. The dollar has also weakened by 7.1% against the British pound, resulting in the pound's value rising from around $1.25 last year to nearly $1.35 currently.

Market Reaction and Future Outlook

The dollar's decline became more pronounced in April, with a 4% drop in just one month, following Trump's tariff policy, dubbed as the "day of liberation," which shook the global financial markets. The market has also been affected by signals that Trump might replace the Federal Reserve's leadership with a more dovish figure, potentially leading to further interest rate cuts.