Financial Times: The US dollar is about to record its biggest annual decline in nearly a decade

DeepFlowTech · 2026-01-01T10:36:14+00:00

The US dollar has faced its largest annual decline since 2017, as market expectations of aggressive rate cuts by the Federal Reserve under the new chair lead to further weakening. The euro has risen significantly against the dollar, reaching its highest level since 2021.

DeepFlowTech

2026-01-01 10:36:14

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Deep Tide TechFlow News, December 31 — According to the Financial Times, this year the US dollar has fallen 9.6% against a basket of major currencies. Market participants believe that the Federal Reserve may aggressively cut interest rates next year under the leadership of the new chairman appointed by Trump, further depressing the dollar.

The US dollar is almost certain to record its largest annual decline since 2017, and Wall Street banks forecast that as the Federal Reserve(Federal Reserve) continues to cut rates, the dollar will weaken further next year. US President Donald Trump(Donald Trump)'s trade war has raised concerns about the world’s largest economy and cast doubt on the dollar’s traditional status as a safe-haven asset for investors.

Among major currencies, the euro has gained the most against the steadily weakening dollar, soaring nearly 14% to above 1.17 USD per euro, the first time since 2021.

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