US Dollar Forecast: 13.5% Decline Predicted Under Trump

Stephen Jen, the chief executive of London-based asset manager Eurizon, predicted a further decline in the US dollar under the presidency of Donald Trump. According to Jen, the dollar's value is expected to drop by 13.5% during the remainder of Trump's term, following a roughly 7% decline in 2025. This projected drop would put the dollar on track for its worst year in eight. The dollar's decline is attributed to Jen's "dollar smile" theory, which suggests that growth abroad will accelerate and further dull the greenback's appeal. This theory is based on the idea that a strong dollar can actually hinder economic growth by making exports more expensive and reducing demand for foreign goods. As a result, countries with weaker currencies may experience increased economic growth, making their currencies less attractive to investors. In 2025, the dollar has already experienced a significant decline, with a roughly 7% drop in value. This decline has been driven by a combination of factors, including a strong US economy and a decline in global demand for the dollar. However, Jen's prediction suggests that the dollar's decline may not be over yet. The dollar's decline has significant implications for the US economy and the global financial system. A weaker dollar can make imports more expensive, leading to higher inflation and potentially even higher interest rates. This, in turn, can make it more difficult for businesses to borrow money and invest in new projects. Eurizon, the asset management firm led by Jen, has a long history of predicting the dollar's decline. The company's "dollar smile" theory has been widely followed by investors and economists, and has been credited with helping to shape the global financial landscape. Looking ahead, Jen's prediction suggests that the dollar's decline may continue in the coming months. However, it's worth noting that the dollar's value can be influenced by a wide range of factors, including changes in global economic conditions, interest rates, and trade policies. As a result, investors and businesses will need to closely monitor the dollar's performance and adjust their strategies accordingly. In conclusion, Stephen Jen's prediction of a further decline in the US dollar under Trump's presidency highlights the complexities and uncertainties of the global financial system. As the dollar's value continues to fluctuate, investors and businesses will need to stay informed and adapt to changing market conditions in order to succeed.