2025 was not easy for the US currency, and most market participants predict that the dollar will remain under pressure in 2026. Reuters reported this in an analytical article. According to investors, there is a high probability of a further decline in the value of the dollar next year.
Experts attribute this process to a number of factors. In particular, the acceleration of global economic growth rates and the reduction of interest rates by the US Federal Reserve System can negatively affect the dollar. At the same time, it is noted that differences in the monetary policy of different central banks also create additional pressure on the US currency. For example, the European Central Bank can maintain rates at the current level.
At the same time, in the short term, interest in the field of artificial intelligence and a certain growth in the US economy may cause a temporary strengthening of the dollar. However, although the US currency is ending the year with relatively stable signs, investors expect it to continue to weaken in 2026.
During the current year, the dollar depreciated by approximately 9% against the basket of major currencies. This is recorded as the worst indicator in the last eight years. This decline was influenced by expectations that the Federal Reserve System would lower interest rates, a reduction in the interest rate gap between major currencies, as well as concerns about the US budget deficit and political stability.
Analysts believe the dollar could be under pressure due to other central banks maintaining or tightening tight policies, as well as potential changes in Federal Reserve leadership.
It is known that a decrease in interest rates usually leads to a decline in the value of the dollar. Because this makes assets in US currency less attractive to foreign investors and reduces demand for them.
Although there has been a certain recovery in the dollar in recent months, the dollar index has increased by only about 2% from its lowest point in September. According to the Bank for International Settlements, the real effective exchange rate of the dollar, taking into account inflation, was 108.7 in October, which is significantly lower than the record 115.1 recorded in January.
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