The American dollar is under significant pressure in July 2025 due to a number of factors, including expectations of new tariffs initiated by U.S. President Donald Trump, as well as discussions surrounding a government spending bill. Traders in global markets are closely monitoring the potential consequences of these measures, which have already impacted the dynamics of major currencies.
This is reported by Finway
Decline in Major Currency Quotes
On Wednesday, July 2, the dollar approached its lowest values since February 2022 against a basket of leading currencies. The euro fell by 0.3%, reaching 1.1774 dollars. Despite this, the euro remained near its peak recorded in September 2021. The British pound lost 0.15% and dropped to 1.3722 dollars after reaching its highest mark in the last three and a half years the day before.
At the same time, the dollar strengthened against the Japanese yen, rising by 0.3% to reach 143.8. The dollar index, which reflects the value of the American currency against six major world currencies, slightly increased to 96.74. However, this figure remains close to its minimum over the past three years.
Factors Influencing the American Currency
Throughout 2025, many factors have influenced the dollar’s exchange rate: U.S. economic policy, foreign trade relations, and global financial trends. The first half of the year has been the worst for the dollar since the beginning of floating exchange rates, which started in the early 1970s.
“This year, the American currency has been affected by numerous factors, and the first half of the year has been the worst for it since the beginning of the floating rate era in the early 1970s.”
Further developments are expected to depend on U.S. government decisions regarding tariffs and government spending, as well as the reactions of international financial markets.