In the first 100 days of President Donald Trump’s second term, the US dollar has become the worst-performing currency among the G10 nations, according to a research note from HSBC Asset Management. Since Trump’s inauguration on January 20, 2025, the dollar has depreciated by over 7% against the British Pound, while gold prices have surged by more than 22%.
The research note emphasizes that this decline in the dollar may align with the new administration’s policy goals, yet the rapid correction sparks debate over the possible decline of American economic dominance. The uncertainty in US policies has driven market volatility, causing investors to consider the potential repercussions of new US tariff strategies.
The unusual correlations between stocks, bonds, interest rates, and exchange rates highlight market instability. US equities, particularly the S&P 500, have lacked globally in performance, while Indian stocks have rebounded following the Reserve Bank of India’s decision to lower interest rates. The RBI’s actions, alongside the government’s fiscal strategies, are likely to sustain positive dynamics in the bond market. Meanwhile, global oil prices have shown volatility, dropping below USD 60 per barrel, influenced by trade tensions and weak US economic data.
(With inputs from agencies.)
