The Dollar Is Predicted to Have Its Worst Week Due to Political Nightmare 0 8

For the dollar, the upcoming week could be the worst since June 2025. This is reported by Bloomberg.

The reason for this will be the pressure that this currency is experiencing due to the unpredictable U.S. policy ahead of the Federal Reserve meeting. On Friday, January 23, the Bloomberg dollar index already fell to a three-week low and decreased by 0.8 percent over five days. Sharp fluctuations in the White House's stance played a role in this. Initially, its head, Donald Trump, announced additional tariffs against some European countries that disagreed with Washington's claims on Greenland, and then he backed away from these tariffs after a meeting in Davos.

The agency noted that the dollar's decline in a situation of rising U.S. Treasury yields and expectations of the Fed maintaining its rate at the same level indicates that political risks are affecting this currency more strongly than monetary policy.

"The world understands that the nightmare of American politics is not over yet," noted Brent Donnelly, president of Spectra Markets, on this matter.