US Dollar Faces Uncertain Future Amid Global Tensions and Economic Challenges
The US dollar experienced its worst year in eight, declining 9% due to expectations of Fed rate cuts and global economic shifts, with most analysts predicting further weakening in 2026 as other major economies gain momentum and central bank policies diverge. Near-term rebounds may occur due to AI enthusiasm and US growth, but the overall trend points to a weaker dollar driven by global growth convergence and monetary policy divergence.