According to a report by the Financial Times on December 31, as reported by Deep Tide TechFlow, the U.S. dollar has fallen by 9.6% against a basket of major currencies this year. Market participants believe that the Federal Reserve may aggressively cut interest rates next year under the leadership of a new chairman appointed by Trump, further depressing the dollar.
The dollar is almost certain to record its largest annual decline since 2017, and Wall Street banks predict that the dollar will weaken further next year as the Federal Reserve continues to lower interest rates.
This year, the U.S. dollar has dropped by 9.6% against a basket of major currencies. The trade war initiated by U.S. President Donald Trump has raised concerns about the world's largest economy and cast doubt on the dollar's traditional role as a safe-haven asset for investors.
Among major currencies, the euro has seen the largest gain against the weakening dollar, surging nearly 14% to above 1.17 dollars per euro, marking the first time since 2021.
