Dollar Set to Weaken Beyond August on Rate Cuts, Trump-Fed Fight

Trump is questioning the credibility of the central bank as well as the validity of economic data, further undermining the greenback’s appeal. — Trump is questioning the credibility of the central bank as well as the validity of economic data, further undermining the greenback’s appeal.
Photographer: Andrey Rudakov/Bloomberg

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By George Lei

August 29, 2025 at 9:30 AM UTC

Updated on

August 29, 2025 at 8:06 PM UTC

The dollar retreated in August after posting its best month this year as investors prepare for a weaker US economy and interest-rate cuts even as inflation continues to advance.

The Bloomberg Dollar Spot Index lost 1.7% this month, trimming its 2.7% advance in July, which was its first month of gains since President Donald Trump was sworn into office.