Currency values often experience constant ups and downs, but the exchange rate of the dollar has seen a significant decline in recent months.

So why this drop, and who should we blame for it?

What has happened to the dollar since the election of U.S. President Donald Trump?

The dollar exchange rate was rising during the fall leading up to the presidential election in 2024, thanks to a relative growth in the U.S. economy, and it continued to strengthen after Trump's victory in November, with hopes of its continued ascent.

Discussions about Trump's trade policy also had an impact. Many investors believed that the tariffs he promised to impose would lead to increased inflation. This would force the U.S. central bank to raise interest rates, or at least not lower them as quickly as expected.

Announcement

Raising interest rates in the United States makes the dollar more attractive, as it means that investors will achieve higher returns from their dollar cash compared to other currencies.