On Its 240th Anniversary, US Dollar is Weakened and Challenged
A sheet of $1 bills.
June 6 marks 240 years since the Continental Congress officially adopted the US dollar as the unit of money for the country. But how does the greenback feel today?
US Dollar Weakening
“The US dollar is weaker in 2025, losing value against gold, reflecting inflation and money printing,” Angelo Giuliano, a Hong Kong-based financial analyst, tells Sputnik. The dollar has slid about 9% since January, with a 4.5% drop in April alone.
De-dollarization
BRICS+ and Global South countries are ditching the dollar in trade, citing weaponization, Giuliano says. “Future de-dollarization trends could worsen its position, as a multipolar system is emerging, challenging the dollar’s dominance despite trade truce boosts.”
Erosion of Trust
Tariffs and market declines in 2025 are weakening its safe-haven status. In 1995, US dominance ensured confidence. Now, allies diversify assets, fearing instability. The above factors are making the dollar far less trusted, per Giuliano.
US Dollar’s Major Challenges
Trump’s tariffs push yuan/gold alternatives. Global trade shifts to rival currencies, reducing dollar primacy in reserves. Cryptocurrencies like BTC gain popularity. Weaker manufacturing hurts perceptions. 
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Does US Dollar Have a Rival?
No standalone rival currency has matched the dollar’s liquidity so far, Giuliano says. However, the BRICS bloc is expanding trade in local currencies. 95% of Russia–China trade is now conducted in rubles/yuan. The trend is gaining momentum.
USD Set to Fall Lower
Wall Street warns the dollar will nose-dive further. Morgan Stanley predicts the dollar will drop to pandemic-era lows by mid-2026. JPMorgan Chase & Co. also maintains a negative outlook on the greenback. The euro and the yen are among the biggest winners.
What Does It Mean for the US Economy?
A weakening dollar could boost US exporters and manufacturers by making their goods more competitive abroad. But it also risks hitting economic growth and fueling inflation, as imports become pricier for American consumers.
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