Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The US Dollar wrapped up 2025 with its worst performance since 2017 and is expected to keep that bearish trend going into early 2026. The pressure is coming from The Fed's rate cuts and geopolitical uncertainties shifting the global trade map.
Key Takeaways
- Dollar weakness is driven by The Fed’s rate cut cycle and the new US trade policy preferences.
- Analysts say this isn't "de-dollarization," just a standard market cycle fluctuation.
- The dip in USD value is the main catalyst for the rally in gold and other safe-haven assets.
Read also: Tesla Sales Are Tanking, So Why Is The Stock Still Safe?
The US central bank's monetary easing is making dollar-based assets look less attractive to global investors compared to other high-yield instruments. On top of that, the Trump administration’s preference for a cheaper exchange rate is putting extra pressure on the greenback internationally.
Even though the price swings look sharp, analysts stress that the "de-dollarization" narrative is still a bit of a stretch. A report from the chief economist at Wells Fargo even projects a potential rebound for the currency in the second half of next year once the rate-cut cycle wraps up.
This fiat currency slump has actually been a positive catalyst for safe-haven assets like gold, which recently hit a new all-time high above $4,500 per ounce. Investors are shifting to precious metals to lock in purchasing power amidst fears of the US budget deficit and fiscal policies.
(Place the "Bitcoin, gold and silver over 2025" chart screenshot here)
Market focus is now locked on internal Fed dynamics, especially with Jerome Powell’s term ending this coming May. The tension between central bank policy and the executive branch’s wishes could create some extra volatility that traders need to watch out for.
On the flip side, digital assets and stablecoins are starting to look like viable alternatives for storing value, even though Bitcoin had a rough end to last year. Analysts from BlackRock highlight that stablecoin adoption in emerging markets could actually support the dollar's relevance indirectly through digitized financial access.
Read also: Neuralink Goes Mass Production, Surgery Now Fully Automated
Reference:
- Watcher Guru News, Dollar Weakness in 2026 Isn’t De-Dollarization, Analysts Say. Diakses pada 2 Januari 2026
- The National, Why 2026 could be another difficult year for the dollar. Diakses pada 2 Januari 2026
- Featured Image: Shutterstock
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
