The U.S. dollar's decline is gaining speed as anticipated interest rate cuts by the Federal Reserve threaten to end the greenback's yearslong period of strength.
The dollar has fallen 5% from its 2024 highs, close to its lowest level in about a year against a basket of its peers following a sharp drop last month.
The reason is an imminent drop in U.S. interest rates. For years, a robust U.S. economy and persistent inflation kept rates far above those of other developed countries, making dollar-based assets more attractive and keeping the currency elevated even after it hit a two-decade high in 2022.
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