The US dollar, the world's reserve currency, appears to have run out of the steam that has powered it in the past few weeks and months, especially since Donald Trump won the election in November 2024.

While the dollar rode on the optimism of the US economy strengthening, while putting other developing economies under pressure.

Dollar Dips In Value

This phenomenon drove the dollar to new heights. The dollar surged, reaching the mark of 109.96 in mid-December of last year. While it came down from that mark, it continued to remain on healthy roads thereafter.

Things changed with Trump's executive orders and tariff war that has been the hallmark of this US administration's first 5 weeks under the 47th president.

The decline only escalated in the past few weeks, coinciding with increasing erraticity of the US government polices or lack of it.

Ever since he was sworn in, Trump has threatened almost all of his allies with tariffs. In addition, he has already gone back and forth between imposition of tariffs on Canada and Mexico, twice.

These developments have sparked fears of recession, as many see these factors to hit businesses, this in turn could impact the common consumers in a consumption-driven US economy, thereby slowing down the economy.

As a result of this, the US dollar has dipped a cumulative 4 points in nearly two weeks. On February 28, the value of the green notes, measured by the US Dollar Index (DXY) stood at 107.61, this has now come down to 103.61.

This has marked a major 3.71 per cent decline in the value of the US Dollar, as per the US Dollar Index (DXY).

While the US Dollar Index measures the value of the US Dollar against a basket of foreign currencies, rather than just one, the value of the American dollar against individual currencies is also important.

US Dollar Vs Indian Rupee

The US Dollar's stature against the Indian Rupee has weakened relatively in the past two weeks.

The Rupee has bettered its position from 87.47 at the end of February to 87.07 in mid-March.

US Dollar Vs Euro

The US-Euro match currently stands at 1.037 compared to 1.088 a fortnight ago, here the European currency bettered its position against the US dollar.

US Dollar Vs British Pound

The British Pound also improved its standing against the world's reserve currency.

Currently, one pound is equivalent to 1.29 US dollars, this lower than the previous 1.25 by the end of February.