The US dollar was among the worst-performing currencies in 2025, dipping against eight out of nine leading currencies. The DXY index, which measures the USD’s performance, shows the currency falling to 98.3. It fell from a high of 109.80 early this year, on the heels of Trump’s inauguration day. The greenback fell close to 10% year-to-date and is attracting heavy bearish market sentiments.

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Weakness In the US Dollar Will Continue, Says Analyst

Kamakshya Trivedi, Head of Global FX at Goldman Sachs said that the US dollar’s weakness is here to stay. He explained that the USD is no longer the safe haven as other currencies are in a race to topple it from the world’s reserves. Central banks of developing countries are cutting back on the USD and diversifying their reserves with gold.

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The decline of the US dollar began after the White House pressed sanctions on Russia in 2022. Emerging economies grouped to push local currencies for trade settlements ending reliance on the USD. “I think the dollar weakness has further to run. The dollar weakness is here to stay. It’s going to persist, and it’s going to deepen,” said Trivedi.

He also explained that the euro and the Japanese yen could deliver better returns than the US dollar. “It’s going to be the euro or the yen in the lead. That’s your typical ultra-safe haven. And I think that we could be getting back to the low 130s in quick time if the labor market data in the US start to crack.”

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Read here to know how long the US dollar will remain the dominant currency in the global markets. Several local currencies are now trying their shot to take the top spot and leave the USD behind. The euro, pound, Chinese yuan, and Japanese yen are in the race.