US dollar hits 2-week low as traders get more bearish than ever ahead of G7 meeting

Traders are increasingly bearish, anticipating signals from the upcoming G7 meeting. Concerns over government debt and potential tax cuts have led to a 6% decline since the start of 2025, marking one of the worst starts for the dollar in nearly two decades.

Moody’s recent downgrade of the US credit rating exacerbated the dollar’s decline against G10 currencies. The financial community is worried about rising fiscal issues, as foreign investors begin to retreat from US market financing.