📉 DOLLAR COLLAPSE: 2025 SEES THE GREENBACK’S WORST YEAR IN NEARLY A DECADE
The era of the “King Dollar” hit a major speed bump. After dominating in 2024, the US Dollar Index (BBDXY) fell a staggering -8.2% in 2025—its sharpest annual drop since 2017 and one of the weakest performances since 2003.
🔍 Why the Reversal?
Fed Pivot: Cooling interest rates erased the Dollar’s “yield advantage,” reducing investor demand.
Sentiment Shift: Hedge funds are officially bearish for the first time since mid-October. Smart money is betting against a near-term recovery.
Historical Rarity: Annual Dollar declines are uncommon. Since 2010, losses have occurred only 5 times—2025 now joins this rare list.
🚩 What’s Ahead?
All eyes remain on the Federal Reserve. With the Dollar at multi-year lows, the next moves in US monetary policy will determine whether the Greenback rebounds—or slides further into 2026.
Engage with this insight: LIKE 👍 | FOLLOW ✅ | SHARE 🙌 | COMMENT ✍
#USDollar #DollarDrop #FedPolicy #InterestRates #MacroTrading #FXMarkets
