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Dollar Stumbles Into 2026 After Worst Annual Slide In Eight Years

Hundred dollar bills are seen in this photo illustration in Warsaw, Poland on 01 January, 2023. The U.S. dollar entered 2026 on a weak footing after falling about 9.4% in 2025, its sharpest annual decline in eight years, as investors reassessed U.S. interest rate prospects and broader policy risks. The drop reflects a narrowing rate gap with other major economies, concerns over the U.S. fiscal deficit, trade uncertainty, and questions about the Federal Reserve’s future independence. In contrast, the euro and sterling recorded their strongest yearly gains since 2017, while the yen lagged despite Bank of Japan rate hikes. Markets are now focused on upcoming U.S. economic data and the appointment of a new Fed chair, with expectations growing for rate cuts later in 2026. (Photo by Jaap Arriens/NurPhoto)

Photo ID	#13149338
Date Taken	5 January 2023
Location	N/A
Photographer	Jaap Arriens/NurPhoto
Category	Economy, Business and Finance
Copyright	© 2026 NurPhoto - Jaap Arriens/NurPhoto

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