Dollar's Freefall: Worst Year Ever, De-Dollarization Slow

The US dollar is on track for its worst year in modern history, down over 7% and potentially falling another 10% according to Morgan Stanley. A weaker dollar boosts US exports but increases import costs, exacerbating tariff impacts. While de-dollarization efforts, such as increased gold reserves and currency promotion, are underway, the dollar's dominance remains largely unchallenged. History shows significant dollar fluctuations often create instability; the 1973 devaluation led to Nixon taking the US off the gold standard.