Catenaa, Friday, August 08, 2025- The US dollar is expected to weaken steadily in the coming months as mounting doubts about Federal Reserve independence, the credibility of official data, and rising fiscal pressures unsettle investors, according to a Reuters survey of foreign exchange analysts released Tuesday.
The greenback’s slide accelerated after President Donald Trump dismissed Bureau of Labor Statistics Commissioner Erika McEntarfer over unproven claims of data rigging, days after record downward revisions to US job figures. The move wiped out gains from Trump’s recent tariff deal with the European Union.
Analysts cited Trump’s erratic trade measures, repeated attacks on Fed Chair Jerome Powell, and ballooning U.S. debt as factors driving a sustained bearish outlook for the dollar.
The Reuters poll of August 1-5 forecast the euro will rise roughly 2% to $1.17 by October, climbing to $1.18 in six months and $1.20 in a year, its highest projected level since late 2021.
Concerns about Fed leadership are also weighing on sentiment. Powell has resisted Trump’s calls for steep rate cuts, and the early resignation of Fed Governor Adriana Kugler has heightened market nerves over a potentially more dovish central bank composition ahead of Powell’s term ending next May.
Strategists warned that until confidence in U.S. data and central bank independence stabilizes, investors are likely to sell the dollar on rallies and diversify toward other major currencies.
