The US dollar is experiencing its steepest annual decline since 2017. Wall Street banks predict that as the Federal Reserve continues to cut interest rates, the US dollar will weaken further next year. This year, the trade war initiated by US President Donald Trump raised market concerns about the world's largest economy, while also causing investors to question the dollar's traditional safe-haven status. Affected by this, the US dollar has fallen 9.6% against a basket of major currencies. Among major currencies, EUR/USD rose the most significantly, surging nearly 14% above $1.17. The last time this level was seen in 2021. “This was one of the worst years for the US dollar in the history of the floating exchange rate system.” George Saravelos, head of global foreign exchange research at Deutsche Bank, said. Analysts warned that even if US stocks continue to rise next year, they may not be able to boost the dollar.

The US dollar is experiencing its steepest annual decline since 2017. Wall Street banks predict that as the Federal Reserve continues to cut interest rates, the US dollar will weaken further next year. This year, the trade war initiated by US President Donald Trump raised market concerns about the world's largest economy, while also causing investors to question the dollar's traditional safe-haven status. Affected by this, the US dollar has fallen 9.6% against a basket of major currencies. Among major currencies, EUR/USD rose the most significantly, surging nearly 14% above $1.17. The last time this level was seen in 2021. “This was one of the worst years for the US dollar in the history of the floating exchange rate system.” George Saravelos, head of global foreign exchange research at Deutsche Bank, said. Analysts warned that even if US stocks continue to rise next year, they may not be able to boost the dollar.