When speaking about Trump’s presidency, we immediately think about rising stock markets and a strong dollar. However, some currencies have actually lost their value due to Trump’s stance compared to other countries like China, the EU, Canada, and many more. The analysis to detect currencies that have lost most of their value will help investors and traders anticipate major trends for certain currencies and turbocharge their profit potential. Let’s list the top currencies that lost most of their value during Trump’s reign and analyze why in this guide.
How to evaluate currency depreciation
Currency depreciation can be a serious hurdle for investors and if left unchecked can seriously damage portfolios. Many investors try hedging FX exposure to survive adverse market movements, but traders can make profits even from falling markets. This is why investors should try their best to detect signs of currency depreciation to hedge against it using smart portfolio management. Surely, traders can also use it to sell short depreciated currencies. Below is our methodology for evaluating which currencies lost the most value since Trump entered office for the second time.
Timeframe
We will be focusing on changes since Trump’s inauguration in 2025 and find the losers. To make it a simple process we will use various tools in trading platforms to select the top 5 losers. However, these currencies will be mostly selected from majors and minors and 1 or 2 exotics, as exotic pairs tend to have higher volatility but also spreads are super high, making them less attractive for traders.
Key drivers
Key drivers of these shifts which resulted in major depreciation include tariffs on China and other countries. There was a tendency for inflation across the globe as a result of the pandemic, political instability (major war in Ukraine caused by Russian aggression), and market reactions to execute actions. The world has been a very messy place lately and when such major events occur there are always losers.
Measurement
We will use percentages and important levels to determine how hard the currency depreciated against major currencies like the dollar.
Top currencies negatively impacted by Trump’s presidency
Let’s list some top losers in the ongoing chaos of Trump’s second term and try to analyze why they were falling so much.
Russian Ruble (USD RUB)
In our list, this is the most natural result. After the war was moved into Russia coupled with serious economic consequences of sanctions and Ruble has been in a free fall for some time now. However, it started to stabilize as Trump’s talks about peace were followed by some actions.
The main reason: Sanctions.
Australian Dollar (AUD USD)
AUD/USD started strong but on February 25, it started to move in an uptrend which caused the Australian dollar to lose significant value. Trump’s announcement of various tariffs on many countries including Canada, China, and Europe caused a major earthquake in global financial markets.
The main reason: Trade war concerns.
New Zealand Dollar (NZD USD)
Similarly to AUD/USD, the New Zealand Dollar also has seen similar price movements caused by similar factors. Tariff threats and global trade tensions have shaken investor confidence and led to cautious market movements.
The main reason: Global trade uncertainty.
The Dollar (EUR USD)
The dollar is always sensitive to Trump’s stance and policies. As a pro-business president, Trump’s policies are often focused on strengthening the U.S. stock markets which is often negatively reflected in the USD price. Higher inflation causes stock markets to rise, while the dollar falls. Recent tariff announcements made the USD lose its value sharply.
The main reason: Tariff announcements.
Key Takeaways
- Currency depreciation can offer traders great trading opportunities
- Russian Ruble (RUB) is among the top losers lately due to sanctions taking full toll on its economy
- Australian Dollar (AUD) depreciated due to trade war fears and tariff announcements by Trump
- The New Zealand Dollar (ND) followed the AUD’s pattern and fell due to global trade fears and uncertainty
- The U.S. Dollar (USD) was also among the list of top losers as EUR/USD was moving upward due to tariff announcements and increased inflation pressure
- Investors should hedge against FX risks but traders can use it as a trading opportunity
- Political decisions, economic policies, and major global conflicts coupled with trade wards remain major currency depreciation drivers after Trump entered office for the second time in 2025
