The US dollar held at 97.9 on Friday, remaining at its lowest level since early October, as investors continued to expect interest rate cuts by the Federal Reserve next year. Strong GDP data released on Tuesday had little impact on the rate outlook, with markets still pricing in two additional cuts in 2026. However, Fed officials remain divided over their next move, with most projecting only one more reduction. Adding to pressure on the dollar, precious metals have gained on safe-haven demand amid rising geopolitical tensions. So far this year, the dollar has fallen 9.7%, on track for its weakest annual performance since 2017, marked by President Donald Trump’s aggressive tariff policies and concerns over the Fed’s independence.
