US EditionDollar rises to start 2026 after biggest annual drop in eight years
The dollar rose 0.12% as markets await key U.S. economic reports and a Fed leadership change, with rate-cut expectations influencing currency movements in early 2026.
- On Friday, the U.S. dollar moved at the start of 2026 after struggling against most currencies last year, with the dollar index rising 0.12% to 98.37 and the euro trading at $1.1732.
- A narrowing interest-rate gap between the U.S. and peers helped most currencies gain versus the dollar, while concerns about the U.S. fiscal deficit, global trade war, and Federal Reserve independence persist into 2026.
- The Japanese yen weakened 0.11% to 156.84 per dollar, near a 10-month low, while markets in Japan and China were closed on Friday, causing thin trading volumes.
- U.S. President Donald Trump flagged he would make his Fed chair pick this month as Jerome Powell, Federal Reserve Chair, ends his term in May, with markets expecting faster rate cuts.
- Traders are already pricing two cuts this year despite a divided Fed board, while Goldman strategists said concerns over central bank independence will extend into 2026 and market participants remain cautious ahead of next week's U.S. macroeconomic releases.
14 Articles
14 Articles
Dollar Starts 2026 Slightly Higher After Steepest Annual Fall in Eight Years
The U.S. dollar opened 2026 modestly higher on Friday after suffering its biggest annual decline in eight years. Thin holiday trading and closed markets in Japan and China kept volumes low, with investors positioning ahead of key U.S. economic data due next week. The dollar’s weakness in 2025 was driven by narrowing interest-rate differentials with […] The post Dollar Starts 2026 Slightly Higher After Steepest Annual Fall in Eight Years appeared…
Dollar makes soft start to 2026 after biggest annual drop in eight years
The US dollar made a feeble start to 2026 on Friday after struggling against most currencies last year, while the yen steadied near a 10 month low as traders awaited economic data to predict how central bankers direct interest rates this year. A narrowing interest rate difference between the US and other economies cast a shadow over the market last year, resulting in most currencies gaining sharply against the dollar, with the Japanese yen an ex…
Times of India
Dollar makes a soft start to 2026 after sharpest drop in 8 years
The US dollar began 2026 weakly, struggling against major currencies after a tough 2025. The yen remained near 10-month lows as traders awaited economic data. A shrinking interest rate gap between the US and other nations impacted currency markets, with the euro and sterling seeing significant gains.
Dollar rises to start 2026 after biggest annual drop in eight years
The U.S. dollar strengthened at the start of 2026 following its largest annual decline in eight years, as traders await key U.S. economic data and Fed decisions. The post Dollar rises to start 2026 after biggest annual drop in eight years first appeared on The Journal Record.
Dollar rebounds to start 2026 after posting large drop
The U.S. dollar began 2026 stronger, recovering slightly after its largest annual decline in eight years in 2025. The dollar’s weakness last year was driven by narrowing interest rate differences between the U.S. and other major economies, except for Japan. Driving the news: Persistent concerns over the U.S. fiscal deficit, global trade tensions, and questions about the Federal Reserve’s independence weighed on the currency and are expected to c…
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