💵 U.S. Dollar on Track for Its Steepest Annual Drop in Almost a Decade
The U.S. dollar has weakened sharply in 2025 — headed for its biggest yearly fall since 2017 — as rate-cut expectations and policy uncertainty weigh on the greenback.
• 📉 Annual decline: The dollar is down ~9.5% this year against a major currency basket — its steepest fall since 2017.
• 🇪🇺 Euro strength: The euro has climbed nearly 14% against the dollar, hitting levels not seen since 2021.
• 📊 Rate outlook: Continued U.S. Federal Reserve rate cuts in 2026 — while other central banks hold or tighten — are expected to put further pressure on the dollar.
• 💱 Global FX shift: Other major currencies like the pound and Swiss franc are also stronger on the year, adding to dollar weakness.
A weaker dollar can support U.S. exporters but may spark inflationary pressure domestically and shift investor flows toward commodities and foreign assets.
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