Finance

Dollar bears deepen as greenback slides 2.2% YTD

The U.S. dollar extended its slide, down about 2.2% year-to-date, marking a broader bear move after a string of weaker performance in 2025. The decline comes even as President Donald Trump touted a weaker currency, underscoring mixed signals in policy and sentiment.

📅 January 28, 2026
⏱️ 2 min read
Dollar bears deepen as greenback slides 2.2% YTD

Key Takeaways

  • The dollar index is down roughly 2.2% year-to-date after a more-than-9% drop in 2025.
  • The dollar fell on Tuesday following President Donald Trump said the currency is 'doing great'.
  • Nela Richardson, ADP’s chief economist, calls the decline a 'double-edged sword' signaling economy fragility.
  • Cole Smead says the dollar is in a longer-term bear market, citing a roughly 41% peak-to-trough decline from 2002 to 2008.
  • A weaker dollar can boost U.S. exports and foreign earnings when converted to USD, but raises import prices and could dampen investor confidence.

People Involved

  • Donald TrumpPresident of the United States
  • Nela RichardsonADP Chief Economist
  • Cole SmeadCEO, Smead Capital Management
  • Daniel Von AhlenStrategist, TS Lombard

Entities Involved

  • ADPPayroll processor and HR solutions company
  • Smead Capital ManagementInvestment management firm
  • TS LombardMacro research firm
  • CNBCNews organization reporting the story

MarketMoodz Analysis

For investors, a bear-market framing for the dollar implies currency moves can meaningfully affect multinational earnings, capital costs, and hedging needs as rate differentials shift and risk appetite ebbs and flows.

Historically, the 2002–2008 period saw about a 41% decline in the dollar from its peak to trough, a reminder that durable depreciation can accompany cycles of global growth and policy divergence.

What to watch next: monitor the DXY for momentum, policy signals from the Fed, and evolving global demand indicators, while tracking earnings guidance from U.S. exporters and commodity prices that tend to move with a weaker currency.

Source: Original Article

Get AI-Powered Market Insights

Stay ahead of market-moving events with our real-time analysis and stock ratings.

Start Your Free Trial