Dollar falls to multi-month lows on uncertainty over tariffs, the Fed, and shutdown threat

The value of the dollar continued to drop on Monday, falling to a four-month low as uncertainty surrounding tariffs, the Federal Reserve, and a potential government shutdown put downward pressure on the greenback.

The dollar index dropped as low as 96.85 on Monday, down from recent highs of over 99 just last week. The Bloomberg Dollar Spot Index reached nearly 110 in January 2025. The relative value of the greenback has fallen 11.7% since that time in January of last year.

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The most recent dip is attributable to quickly evolving factors, such as a possible intervention to help the struggling Japanese yen and the growing potential for yet another government shutdown in the coming days.

But