Dollar Faces 8% Decline in 2025, Worst Since 2017
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 26 2025- Dollar Decline Trend: The DXY Index fell 0.8% this week, poised for its worst weekly loss since June, with an 8% year-end decline marking the largest drop since 2017, indicating waning confidence in the dollar.
- Economic Data Focus: Investors are now focused on upcoming U.S. economic data, particularly the December jobs report and inflation readings, which will directly influence the Fed's future rate decisions, with markets anticipating further cuts.
- Strong Performance of Risk Currencies: As liquidity dries up, traders are increasingly favoring risk-sensitive currencies like the Australian dollar and Norwegian krone, exacerbating the dollar's decline and reflecting a preference for risk assets in the market.
- Robust Stock Market: Despite the dollar's weakness, the S&P 500 hit a new all-time high on Friday, showcasing a strong rebound post-Christmas, as investors exhibit optimism driven by technical factors and market positioning.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
