Dollar set for worst year since 2017 with Fed drama center stage

The dollar ended 2025 with the sharpest annual retreat in eight years and investors say more declines are coming if the next Federal Reserve chief opts for deeper interest-rate cuts as anticipated. The Bloomberg Dollar Spot Index fell about 8% this year and traders are betting on further weakness. After tumbling in the wake of President Donald Trump’s tariff rollout in April, the greenback failed to rebound much in part on expectations that Trump will name a dovish successor to Fed Chair Jerome Powell, wh ...