The US dollar is currently standing at a precarious stage in the current market regime. The financial infrastructure has been changing rapidly, with the dollar’s status as a reserve currency being questioned by many. Factors such as dollar weaponization and increased USD volatility have led nations to question the American currency’s mettle in the long run. With President Donald Trump’s tariff ordeals, the USD continues to lose momentum, with leading financial giants like Deutsche Bank predicting the USD will lose its momentum gradually. In this wake, here’s a list of 9 other currencies that are recently taking center stage, defeating the US dollar from all corners and fronts.
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Leading World Currencies Crushing the USD in 2025
The world is now slowly pivoting towards a new financial structure. This structure vastly accommodates the rise of local currencies, with nations eager to reduce their dependence on the US dollar. President Donald Trump has furthered this narrative by imposing strict tariffs on nations. This development has sparked trade war narratives to gain momentum, affecting the US dollar in one of the most violent ways.
In a recent statement, experts shared how the US dollar is now on the precipice of a massive change. This change could undermine its dominion, stressing its position on a global plane.
“What we’re seeing today is a further indication that the structure and nature of the U.S. dollar’s relationship to global markets has changed. There’s an underlying basis for this, which is the changing role of the U.S. in the world.” Said Thierry Wizman, global foreign exchange and rates strategist at Macquarie in New York.
The weakening of the US dollar has alarmed world economists. This trigger has severely impacted the American currency, which noted a massive 1.7% drop in its value last week.
“The three pillars of support that helped the dollar (were) U.S. exceptionalism, high interest rates, and strong portfolio flows. All three have been severely weakened and potentially reversed as a result of the deluge of tariff announcements,” said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi, the biggest European asset manager.”
In such diverse narratives, these ten currencies are outperforming the US dollar and are capable of giving it stiff competition. By strong currency, we refer to the elements of worth or value that currency possesses at any given time. They are listed below from strongest to weakest.
- Kuwaiti Dinar
- Bahraini Dinar
- Omani Rial
- Jordanian Dinar
- British Pound
- Gibraltar Pound
- Cayman Islands Dollar
- Swiss Franc
- Euro
- US Dollar
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The Erosion Of The USD’s Purchasing Power
Per a recent post by notable expert Anthony Pompliano, the US dollar has lost 25% of its purchasing power to date.
The US dollar has lost 25% of its purchasing power since January 2020.
— Anthony Pompliano 🌪 (@APompliano) March 27, 2024
Every $1 you had is now worth $0.75 of goods.
Insane. pic.twitter.com/vu0znTRvLt
The same sentiment was later outlined by Bravis Research, emphasizing USD’s losing credibility in the currency domain.
Dollar has consistently depreciated since 1955
— Bravos Research (@bravosresearch) November 12, 2023
Losing its purchasing power very aggressively
When the purchasing power of USD is low
It means that each dollar buys a relatively smaller amount of goods and services
This reduces affordability for the average person
Resulting… pic.twitter.com/yCqdlsIB0L
“The dollar has consistently depreciated since 1955. Losing its purchasing power very aggressively. When the purchasing power of USD is low. It means that each dollar buys a relatively smaller amount of goods and services. This reduces affordability for the average person. Resulting in less money available for personal spending or saving.”
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