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The Emirates News Agency reported that the dollar struggled for traction against major peers as it registered only modest fluctuations in major pairings during the session. Currency traders weighed prospects for interest rate decisions by the Federal Reserve against those of other central banks including the European Central Bank and the Bank of Japan. Data compiled by multiple financial institutions pointed to ongoing volatility stemming from divergent monetary policy expectations and geopolitical developments.
TD Economics figures show the U.S. dollar fell roughly 8 percent in broad trade-weighted terms in 2025 with a nearly 15 percent depreciation against the euro. The Canadian bank’s assessment placed the decline against the British pound at 9 percent while the dollar remained roughly flat against the Japanese yen over the same period. Those shifts brought the greenback close to its 2015-2019 averages versus several major counterparts according to the report.
A Brookings Institution review published in March 2026 determined that the dollar had fallen around 10 percent on a trade-weighted basis since the start of President Trump’s second term. The Washington think tank’s analysis of IMF data found that reserve managers maintained their overall allocations to the dollar despite the valuation changes with longer-term declines appearing gradual rather than accelerated. The euro failed to make significant gains in reserve share during the period the assessment noted.
WIRED reported in December 2025 that America’s share of global trade had declined from one-third in 2000 to one-quarter at present contributing to reduced centrality of the dollar in international transactions. The publication detailed how more than half of China’s trade now clears through domestic payment systems instead of traditional Western-dominated networks. Partnerships involving countries such as the UAE India and Brazil have piloted settlements in local currencies according to the article.
BBVA Research observed that after beginning 2026 with weakness that pushed the euro above 1.20 dollars the greenback reversed course on expectations of a more hawkish Federal Reserve stance. The Spanish bank’s report tied the dollar’s later gains to Middle East tensions rising oil prices and capital inflows linked to artificial intelligence infrastructure investment in the United States. The yen faced particular pressure with the dollar-yen exchange breaking above 163 before coordinated intervention occurred the assessment found.
Public data from central bank reserve reports indicate the dollar’s share of global allocated reserves stands at 58 percent down from 72 percent in 1999. Emerging market currencies displayed varied performance with some supported by elevated local interest rates and improved growth outlooks. Market participants continue to track incoming economic releases for further direction on currency valuations.
