BRICS Nations Witness Continued Decline of the US Dollar Amid Escalating Trade War Concerns

The US dollar’s depreciation persists as geopolitical tensions and trade war anxieties intensify among BRICS member countries. Market analysts attribute the greenback’s downward trajectory to shifting global trade dynamics and reduced confidence in traditional reserve currencies. This trend coincides with growing discussions about alternative settlement mechanisms between emerging economies seeking to reduce dollar dependency. Financial institutions are closely monitoring the situation, as prolonged dollar weakness could accelerate de-dollarization efforts across developing markets.

Source: The New York Times

US Dollar Struggles as Trade Fears Look to Benefit BRICS Bloc

It has been a rather concerning month for the global economy. US President Trump has ushered in a strong America-first policy in the form of his new tariff plan. Subsequently, it has seen continued concern over the potential for increased geopolitical tensions.

As the United States and BRICS have continued their faceoff, the US dollar has continued to fall amid trade war concerns. Although it edged a bit higher on Monday, it approached the mid-way point of April, reaching a three-year low against the euro and Japanese yen. It approached oversold territory in its metrics and therefore, jumped slightly. Yet, it is still in a concerning position.

Source: X

Investors have shown they are wary of the greenback with tariff turmoil still abounding. This is increasingly interesting when it comes to the BRICS bloc, as they have been the face of increased de-dollarization and gold buying. Subsequently, the latter has reached record highs above $3,200 this year.

“The uncertainty is now at an intolerable level for most businesses in international trade.” Adam Button of ForexLive told Reuters. “Right now, the market is taking a dim view of future US growth, and that has come through most clearly in the currency market.” Where this goes will be interesting, considering how important the dollar’s status was to President Trump when he was first elected in late 2024.