Worst start to a year in 50 years: how will the collapse of the dollar affect prices?

The US currency is experiencing the worst start to the year in the last 50 years. In the first six months of 2025, the dollar weakened by more than 10% against the key currencies of US trading partners. The consequences will be noticeable in the prices of ordinary goods, online orders and even in the cost of holidays abroad, writes Pravda.Ru .

The reasons for the collapse are on several fronts at once. Experts point to increased investor anxiety about inflation, ballooning public debt and Washington's unstable policy. The new giant budget spending bill has only increased fears that the dollar will continue to lose value. Donald Trump's statements also played a role — he sharply criticizes the Federal Reserve, and his unpredictable tariff policy adds uncertainty.

As Paolo Pasquariello, a professor of finance at the University of Michigan, explains, investors no longer consider US Treasury bonds as a safe haven — and this is an unprecedented signal. What does this mean for ordinary people?

The prices of imported goods will rise. Manufacturers abroad do not want to lose revenue: if they receive less in terms of their currency, they start putting higher price tags on American customers. Online shopping abroad, electronics, furniture, even repair parts — all this can go up in price.

And travelers will feel it especially unpleasantly: the exchange rate is no longer playing in their favor. If you are traveling to Europe, every coffee, ticket and hotel room will cost more — simply because now you have to pay more dollars for euros.

Is there any good news? For exporters, yes. American goods are becoming cheaper for buyers abroad, and this can give a boost to industries such as automotive and technology. In addition, the US may see a surge in tourism: when the dollar is weak, a trip to America becomes attractive for Europeans and Asians. But inside the country, the consequences are still mostly unpleasant — and affect an increasing number of consumers.