Is the Trump administration intentionally weakening the US dollar?

THE question of whether the Trump administration is deliberately pursuing a weaker US dollar has become one of the most consequential debates in international economics today. The answer, paradoxically, appears to be both yes and no – revealing deep contradictions within the administration’s economic strategy.

The paradox: A dollar in decline

The dollar experienced its steepest first-half decline in over 50 years during 2025, dropping nearly 11 per cent in the six months following Trump’s inauguration. This historic weakness stands in stark contrast to Wall Street’s pre-election expectations that his policies would strengthen the greenback. The dollar index fell 10.8 per cent in H1, while the euro has risen 13 per cent to above US$1.17.

Yet this decline cannot be attributed to a coherent, intentional policy. Instead, it reflects the unintended consequences of aggressive and erratic economic policies that have shaken global confidence in American leadership.