The U.S. dollar index—a gauge of the greenback against a weighted basket of currencies such as the British pound and Japanese yen—has languished this year.
The index has wiped out its post-election gains, tumbling by about 4 percent in the first three months of 2025.
Concerns surrounding economic growth, inflation, and tariffs have driven the dollar’s recent slump.
The Federal Reserve’s rate-cutting cycle has further weighed on the buck.
Market watchers have also attributed the currency’s weakening to foreign developments, such as Germany striking a historic investment package and Japan signaling interest rate hikes.
The sharp decline has sparked questions about the status of the government’s strong-dollar policy….