Weekly Market Recap – March 17, 2025

After the election, many anticipated that the dollar would continue its upward trajectory, even after hitting its highest level in real effective terms since the 1980s. This was fueled by the belief that the new administration’s policies would stimulate real economic growth and reduce the probability of significant Fed rate cuts in 2025. However, this week’s chart shows the dollar’s recent plunge, declining 4.4% year to-date, casting doubt on previous expectations.