The value of the US dollar fell sharply in 2025, compared to major currencies, following the imposition of historically high US tariffs. One possible explanation is that investors expected that, if the United States restricts imports and the volume of US trade with the rest of the world falters, demand for US dollars could decline with it. Thus, this may have contributed to selling pressure on the dollar. However, in 2026, the dollar has rebounded. There are several possible explanations.
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Nov