Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
The American dollar has hit its rock bottom, at least since the Nixon days. The dollar is experiencing its worst value since 1973, and other factors may bring it even lower. There are a few tactics, however, that consumers have to level the playing field and fight inflation.
How Low Can You Go?
According to a July report by MarketWatch, the ICE U.S. Dollar Index fell by nearly 11% in the first half of 2025, the biggest decline during the first half of a calendar year on record since when Nixon was president.
Experts say that the wave of tariffs imposed by President Trump has eroded national and international faith in the dollar, especially following his attacks on the central bank.
“What can kill the value of the U.S. dollar, what can absolutely destroy faith in the U.S. dollar, is attacking in any way, shape, or form the independence and authority of the Federal Reserve,” Juan Perez, senior director of trading at Monex USA, told Reuters.
A July report by UniCredit, a pan-European commercial bank, called the American dollar “the most notable loser so far this year.”
“It has lost 10% against other currencies, with investor concerns regarding Trump’s policies having weighed on the greenback,” the report said. “On the other hand, the EUR index has risen by 5%.”
How You Can Fight Inflation
Leaving your excess income in a checking or a regular savings account will do nothing against inflation and puts you at a disadvantage as the dollar gets weaker. For money that doesn’t need to go toward immediate purchases or bills, put it in a certificate of deposit (CD) or high-yield savings account for growth.
A CD is a savings account that allows consumers to earn interest at a fixed rate over a predetermined period. The tradeoff is that users have limited access to their funds, unlike most savings accounts, where withdrawals do not incur penalties. CDs are often a go-to move for those saving for big-ticket items, like a home or a car, or those with disposable funds they’d like to grow. Interest rates are typically much higher than typical savings accounts.
Keep in mind certain factors when picking out a certificate of deposit account, as they will determine how much interest you earn on money that’s immovable over your fixed term.
When choosing a CD, take care to note its compounding schedule, which is how your money will grow. Some CDs compound interest daily, while others compound monthly. The more frequently the interest compounds, the more you stand to earn.
Read More: 10 Best CD Rates of July 2025: Up To 4.50% APY
High-yield savings accounts may be a better option for those who can’t afford to hole their money up for months or years at a time, as they’re more flexible than CDs and allow enrollees to withdraw money whenever they need to without penalty. Interest rates are much higher than the national average, with users eligible to earn as much as 5.84% on their savings, with the highest yield on a standard savings account with a $2,500 minimum deposit amount at the rate, according to data from Curinos.
Read More: 10 Best High-Yield Savings Accounts Of July 2025: Up To 3.80% APY