Is the US Dollar's Decline a Sign of America's Financial Changes?

There's perhaps no better symbolic representation of America's financial might than the U.S. dollar. And right now, the world's top currency is taking a big, mighty punch.

The dollar has slumped more than 10% this year, posting its worst decline in the first six months of a year since 1973, back when President Nixon shocked the world by detaching the dollar's value from gold.

The decline reverses a long stretch of annual gains for the dollar — and it's especially confounding given that the U.S. economy is still doing well.

Many investors now fear the decline could reflect a new reality for the U.S., just after the country celebrated its 249th birthday.

Whether one agrees or disagrees with President Trump, one thing is clear: His second term is shaping up to be quite different — and it's unnerving many investors, both in the U.S. and abroad.

Foreign investors have indeed responded — by selling American stocks and bonds, which has pushed the dollar sharply lower.

Not everybody is convinced that the dollar's decline is an alarming trend.

Despite the dollar's steep decline this year, few analysts are willing to make sweeping judgements about what it symbolizes for the U.S. At least, not yet.

But the concerns remain about whether the dollar's decline is a reflection of a long-term reassessment of the U.S. financial standing in the world — and a sign that the overwhelming dominance of the dollar might be coming to an end.

According to the source: NPR.