The dollar is experiencing a period of strong falls: is it temporary or a crisis that will last over time?

Periodista Portafolio 02.14.2026 18:51 Updated: 02.14.2026 18:51

The dollar is experiencing a period of strong falls: is it temporary or a crisis that will last over time?

TL;DR

  • The US dollar has lost nearly 10% since Donald Trump's inauguration.
  • Factors influencing the fall include trade tensions, Federal Reserve pressures, and changing monetary policy expectations.
  • A weaker dollar can benefit US exporters and multinational corporations' foreign earnings.
  • However, it can also make US assets less attractive and increase import costs, potentially leading to inflation.
  • International markets, including Europe, Japan, and Brazil, have seen stronger gains than the S&P 500 when adjusted for dollar depreciation.
  • While historically dollar fluctuations have had a weak correlation with US corporate profit growth, sharp movements can impact investment decisions.
  • The current weakness occurs amidst mixed signals from the administration regarding currency policy.