Market News
Dire year for dollar has little light at end of tunnel in 2026 - REUTERS
Summary
- Dollar expected to weaken as global growth picks up, Fed cuts rates
- Central bank divergence may pressure dollar, ECB likely to keep rates steady
- Near-term dollar rebound possible due to AI enthusiasm, U.S. growth boosts
NEW YORK, Dec 22 (Reuters) - A dismal year for the U.S. dollar is ending with signs of stabilization, but many investors believe the currency's decline will resume next year as global growth picks up and the Fed eases further.
The U.S. dollar slumped 9% this year, against a basket of currencies (.DXY), putting it on pace for its worst showing in eight years, driven by expectations of Federal Reserve rate cuts, shrinking interest rate differentials with other major currencies, and as concerns about U.S. fiscal deficits and political uncertainty swirled.
