If you’ve been sucked into a so-called doom scroll recently, you’ve likely read the predictions of the implosion of the U.S. dollar, and the collapse of modern society as we know it.
U.S. Dollar Weakness 2025: 4-Year Low Explained
It’s true that the dollar has shown significant weakness in the past year, hitting a 4-year low this year, after a 10.7% decline in the first half of 2025, largely driven by interest rate cuts, rising deficits, and uncertainties over tariffs.
This has added fuel to the doomsdayers who are always promoting an apocalyptic agenda.
If you’ve been reading that , it can be alarming and cause you worry over your investments. So, we need perspective.
Why the U.S. Dollar Still Leads Globally
Here’s a chart from LPL Research, comparing the U.S. dollar against currencies from other advanced countries.
You can see there has been a shift in the dollar’s strength. LPL Chief Economist Dr. Jeffrey Roach explains there’s been a recent appreciation of the dollar. He writes that is reflects investors’ assessment that the U.S. economy offers a uniquely strong combination of relative growth resilience, higher returns, and financial-system credibility.
In other words, it’s still the best thing going.
Iran Conflict Impact: Why Global Stress Strengthens the Dollar
The Iran conflict has driven dollar strength as well. Roach writes this follows historical examples. During times of global stress the U.S. dollar has grown stronger because the U.S. economy is seen as the place of stronger relative growth and productivity when compared with other countries. He also explains the liquidity of owning the dollar is preferred.
Gold Price Drop: Safe Haven Myth Challenged
As the dollar story is improving, you’ve also likely noticed a huge tumble for gold. That seems counter intuitive, gold as seen as a safe haven during times of unrest. But, since the Iran conflict began, gold prices have dropped 21%, and the price is down 27% off it’s all-time highs set in January. LPL Research reminds us that while gold can “have historical tendencies,” it can trade to its own tune.
Investor Takeaways: Currency Volatility and Avoiding Doomscroll Decisions
The bottom line this week is two-fold. First, currencies may be seen as stable, but can be just as volatile as the stock market, or even more so. And the speculative nature of trading in it, makes it an asset class we don’t often recommend for retirement savings.
And second, don’t let the doomsday predictions drive your investment decisions. They are either looking to sell you something, or looking for clicks. What they don’t offer is perspective. Making major global economic predictions is easy to do, but hard to get right.
Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
