Chinese traders are pulling back from the dollar, helping ease a shortage that has rattled the banking system and setting the yuan up for further gains.

The Canadian dollar edged higher against its U.S. counterpart on Thursday but the move was modest as the greenback notched broad-based gains and after new U.S. trade tariffs cast doubt about prospects of a trade deal this month between Canada and the United States.

The U.S. dollar just tallied its worst start to a calendar year since the era of free-floating exchange rates began. The second half of 2025 likely won’t be much better.

NPR reported that Harvard University economics professor Kenneth Rogoff said the dollar hasn't weakened this much since then-President Richard Nixon canceled the convertibility of the dollar to gold in the 1970s.

The Indian rupee weakened on Thursday on the back of dollar bids from foreign banks and a broadly stronger greenback, after U.S. President Donald Trump continued to up the ante on tariffs by announcing a 35% levy on Canadian imports starting August 1.

A troubling shift in the dollar’s trading relationship with U.S. stocks has eased somewhat over the past few weeks.

The U.S. Department of Justice's Antitrust Division and the U.S. Federal Trade Commission cleared three deals that were together worth $63 billion in June, illustrating how FTC Chairman Andrew Ferguson and DOJ antitrust head Gail Slater are taking a different tack from their predecessors.

Economists told Newsweek that the decline is due to a confluence of factors, and a broad downgrade in America's economic outlook.

The U.S. dollar rose against major currencies including the euro and the Swiss franc on Thursday as currency markets largely shrugged off President Donald Trump's latest tariff missives, except in Brazil where a threatened 50% levy sent the real sliding.