Why the dollar got weaker in 2025 — and what it means for 2026

Markets

Why the dollar got weaker in 2025 — and what it means for 2026

How a sharp early-year drop, political uncertainty, and shifting capital flows ended the U.S. dollar’s long era of easy dominance

ByCatherine Baab Share to X Share to Facebook Share to Reddit Share to Email Share to Link

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Investors and analysts may remember 2025 as the year the world blinked — at the U.S. dollar. For much of 2025, the story was one of markets rethinking whether the United States still deserved the premium it had enjoyed for more than a decade,