January 29, 2026, 7:55 p.mJanuary 29, 2026, 7:55 p.m
Since Donald Trump took office for his second term in January, no stone has been left unturned. His erratic changes of opinion have led to a slippery slope that knows only two constants: unpredictability and Trump’s irreverence in how he approaches allies, allies, political friends and enemies.
He also takes a very idiosyncratic course when it comes to economics. He initiated permanent tax cuts for the rich and large corporations. He wants to plug the resulting holes in the budget with tariffs on foreign goods. In doing so, he is primarily fleecing US consumers. A study recently found that 96 percent of the tariffs are paid by US citizens.
As disrespectfully as he treats allies, allies and his own people, he also treats the US dollar. When asked whether he was worried about the loss in the value of the dollar, he replied to reporters on Tuesday evening: “No, I think that’s great.” As soon as it was said, the dollar began its next nosedive.
Europe
It is therefore not surprising that the dollar lost almost 16 percent against the Swiss franc last year (15.78 percent). According to the Financial Times The Swiss franc is the “last reliable haven” for investors.
But the thing is: the dollar didn’t just plummet compared to the Swiss franc. Currencies from other economic areas that are ridiculed by the USA also held up well compared to the greenback.
There is the euro, for example. US government officials use every opportunity to badmouth Europe. Certain countries and areas are hardly recognizable anymore. But the dollar also lost massively against the euro: 13.24 percent.
Even against the British pound – since Brexit the British have only had their black humor to laugh about – the dollar lost a hefty 9.96 percent.
In order to acquire Greenland, the USA is considering making an offer of $100,000 to all residents. But that would have to be done relatively quickly, because in Greenland you pay with the Danish krone. And against this currency, the dollar has also lost 13.2 percent since the end of January 2025. By the way, it is over 20 percent compared to the Swedish krona.
North and Central America
We are leaving the European area – but the picture remains the same. Trump began an ugly feud with Canada. The dollar lost – but at 5.97 percent, significantly less than against the Europeans.
On the other side of the USA is Mexico, an important trading partner for the USA. Mexican President Claudia Sheinbaum is said to be very adept at dealing with Donald Trump. Their good work is also reflected in the strength of the national currency. The dollar lost 16.29 percent against the Mexican peso. The stronger peso increases the price of imports in the USA. This primarily affects agricultural vehicles, car parts, electronics, machinery and agricultural products. Mexico accounts for over 60 percent of all U.S. imports of vegetables. For fruits it is 47 percent.
Asia
At 2.99 percent, the Chinese renminbi yuan (onshore yuan) gained relatively little against the US dollar. China strictly regulates its currency. The central government is aiming for an appreciation in the longer term – but only slowly.
A comparison with the Japanese yen shows how bad things are with the dollar. The island country, which had been stagnating for years, experienced an economic decade to forget due to an aging society, zero growth, enormous debt and various other reasons. Nevertheless, the yen was able to gain 1.74 percent against the dollar last year. So that’s how bad things are with the dollar.
Only the currency of the world’s most populous country, India, depreciated against the US dollar. Although the Indian economy is growing, various factors such as the continued weakness of foreign capital flows are overshadowing the upswing. The dollar gained 5.75 percent against the rupee.
Donald Trump’s joy at the weakening dollar can be explained by the fact that he expects this to boost exports – and at the same time slow down imports. In doing so, he wants to promote domestic production and reduce trade deficits. However, there is a risk that inflation in the USA will increase again.