U.S. dollar index suffers biggest drop since 2022, hits new low for the year

The ICE U.S. Dollar Index dropped sharply again on Thursday, putting the greenback on track for its worst day since 2022.

The index, which measures the U.S. dollar against a basket of global currencies, was last down 1.83% to 101.02. At one point in the session, it slipped below the 101 level. This would mark the index’s lowest close since September.

The drop Thursday widens the struggle for the dollar in the face of President Donald Trump’s aggressive trade policy. Wall Street originally anticipated that the tariffs would boost the dollar, but instead the U.S. currency has fallen more than 7% since Trump’s inauguration, and more than 2% since the president unveiled his full trade policy last week.

The decline for the dollar has come along with sell-offs in U.S. stocks and bonds. This could be a sign that foreign investors are responding to Trump’s protectionist policies by dumping U.S. assets, putting downward pressure on the dollar.

Rising worries about an economic recession could also be weighing on the dollar. Some of the greenback’s biggest declines on Thursday came against the Japanese yen and the Swiss franc, two of the leading safe-haven currencies.