The U.S. dollar was soft on Friday, poised to make its first weekly drop in five weeks against the euro and the yen as worries over the United States' worsening fiscal health sent investors scurrying for safe havens.

ESWAR PRASAD is Senior Professor of Trade Policy in the Dyson School of Applied Economics and Management at Cornell University, a Senior Fellow at the Brookings Institution, and the author of The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance.

RECENT headlines have been rife with speculation about the demise of the US dollar, fuelled by its 10 per cent decline since the start of 2025 and the US’ shifting stance on global trade, marked by increased tariffs.

The Canadian dollar strengthened to a seven-month high against its U.S. counterpart on Friday as the greenback posted broad-based declines and domestic retail sales data supported bets that the Bank of Canada would remain on the sidelines.

A gauge of the dollar touched its lowest mark in a month as traders awaited a Group-of-Seven meeting this week for any signs that the Trump administration is seeking a weaker US currency.

With the Trump administration increasingly focused on striking deals to help weaken the dollar, a team of analysts at Deutsche Bank crunched the numbers and determined just how much the greenback would need to weaken to eliminate the U.

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