OREANDA-NEWS  The dollar is heading for its sharpest annual decline since 2017, and Wall Street predicts further weakening of the currency in 2026. This was reported by the Financial Times (FT).

She recalled that in 2025, the dollar fell by 9.6 percent against a basket of major currencies. The reason was the trade war unleashed by US President Donald Trump. It raised concerns for the world's largest economy and called into question the traditional status of the "American" as a haven for investors. At the same time, the euro strengthened the most against the dollar in the list of major currencies, which rose in price by almost 14 percent. Commenting on this situation, George Saravelos, head of global monetary research at Deutsche Bank, stated that 2025 was one of the worst years for the dollar in the history of free-floating exchange rates.

In this regard, the publication recalled that the weakness of this currency has become a boon for American exporters, but an obstacle for many European companies that profit from sales in the United States. The future fate of the dollar will depend on who replaces Jerome Powell as chairman of the Fed. If its new leader gives in to the White House's calls for deeper interest rate cuts, the US currency will continue to fall.