US Dollar Faces Worst Annual Performance Since 2017, Drops 9.5% in 2025

Source: CryptoNewsNet Original Title: US Dollar Faces Worst Annual Performance Since 2017, Drops 9.5% in 2025 Original Link: The U.S. dollar is set to close 2025 with its biggest annual drop since 2017, declining 9.5% against a basket of major currencies. Factors driving the downturn include potential Federal Reserve interest rate cuts, fiscal concerns, and ongoing political pressures. The euro and British pound are poised for their strongest yearly gains in eight years, with the euro rising 13.5% and the pound surging 7.6%.

Goldman Sachs strategists anticipate continued dollar weakness in 2026, driven by solid global growth and expected Fed rate cuts. The Chinese yuan has also broken through the seven-to-dollar psychological barrier, marking a 4% increase for the year. The Japanese yen remains an outlier, remaining broadly flat despite two Bank of Japan rate increases.

Key Market Insights:

• The dollar index dropped 9.5% in 2025
• The euro gained 13.5% and the British pound surged 7.6%
• Interest rate cuts, fiscal worries, and political uncertainties are driving dollar weakness
• Traders are pricing in potential Fed rate cuts and continued global economic shifts for 2026