The Financial Times reported on December 30 that the US dollar is heading towards its deepest annual decline since 2017. As the US Federal Reserve continues to cut interest rates, the financial community predicts that the US dollar will weaken further in 2026. The Financial Times pointed out that US President Trump launched a trade war this year, triggering market concerns about the US economy, shaking the dollar's traditional safe-haven asset position, and causing the US dollar to plummet 9.5% against a basket of major currencies this year. Some analysts and investors believe that the Federal Reserve may continue to cut interest rates next year, while other central banks, including the European Central Bank, will maintain or even raise borrowing costs. This policy differentiation will further weaken the dollar. Some traders expect the Federal Reserve will cut interest rates by 25 basis points two to three times in 2026.

The Financial Times reported on December 30 that the US dollar is heading towards its deepest annual decline since 2017. As the US Federal Reserve continues to cut interest rates, the financial community predicts that the US dollar will weaken further in 2026. The Financial Times pointed out that US President Trump launched a trade war this year, triggering market concerns about the US economy, shaking the dollar's traditional safe-haven asset position, and causing the US dollar to plummet 9.5% against a basket of major currencies this year. Some analysts and investors believe that the Federal Reserve may continue to cut interest rates next year, while other central banks, including the European Central Bank, will maintain or even raise borrowing costs. This policy differentiation will further weaken the dollar. Some traders expect the Federal Reserve will cut interest rates by 25 basis points two to three times in 2026.