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U.S. Dollar Plummets 8% Amid Fed Turmoil, Tariff Uncertainty

1/2/2026

30 6 Full Breakdown

Summary

Story summary

The U.S. dollar ended 2025 with its worst performance since 2017, falling about 8% against foreign currencies.
The decline was driven by Federal Reserve turmoil and uncertainty after U.S. President Donald Trump’s April tariffs.
Analysts expect further weakness in 2026 as at least two rate cuts are anticipated, amid policy uncertainty.
The dollar's appeal has weakened versus the euro as traders expect a dovish successor to Fed Chair Jerome Powell.

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Story summary

The U.S. dollar ended 2025 with its worst performance since 2017, falling about 8% against foreign currencies.
The decline was driven by Federal Reserve turmoil and uncertainty after U.S. President Donald Trump’s April tariffs.
Analysts expect further weakness in 2026 as at least two rate cuts are anticipated, amid policy uncertainty.
The dollar's appeal has weakened versus the euro as traders expect a dovish successor to Fed Chair Jerome Powell.