Why the U.S. dollar is finally rebounding after a disastrous start to the year

Core Insights - The dollar experienced its worst first-half performance in a calendar year since at least the early 1970s, indicating significant challenges in the currency market [1] - Following the Federal Reserve's decision to cut interest rates again in September, the dollar has been rising steadily, suggesting a potential recovery in its value [1] Economic Performance - The first half of 2025 marked a historically poor performance for the dollar, highlighting the volatility and challenges faced by the currency [1] - The Federal Reserve's interest rate cuts initiated in September have positively impacted the dollar's performance, leading to a steady increase [1]