Negative outlook published authoritative edition of the Financial Times (FT). It recalled that in 2025, the dollar fell by 9.6% against a basket of major currencies.
The reason was the trade war unleashed by US President Donald Trump. It raised fears for the world’s largest economy and questioned the traditional status of the “American” as a safe haven for investors. At the same time, in the list of major currencies, the euro strengthened strongest against the dollar, which rose in price by almost 14%.
Commenting on this situation, George Saravelos, Head of Global Currency 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 been a boon for American exporters, but an obstacle for many European companies profiting from sales in the United States.
The further fate of the dollar will depend on who will replace Jerome Powell as chairman of the Fed. If its new head gives in to the White House’s calls for a deeper cut in interest rates, the U.S. currency will continue to fall.
