New york: The US dollar steadied today but remained on track to post its steepest annual decline since 2017. The currency’s weakness throughout 2025 has been fueled by successive interest rate cuts and persistent market anxiety over the nation’s fiscal trajectory and the volatile trade policies of the Trump administration.

According to Oman News Agency, these concerns are expected to linger into 2026, indicating the dollar’s subdued performance may continue, thereby providing support to rival major currencies. The euro and British pound sterling, which have registered substantial gains this year (2025), stand to benefit from this dynamic. Further pressure on the dollar stems from ongoing doubts about the operational independence of the US Federal Reserve under the current political climate. President Trump has stated he will announce his nominee for Fed Chair in January, a position that will succeed Jerome Powell, whose term ends in May.

With Japanese markets closed for the week and most major financial centers shut tomorrow (Thursday) for the New Year holiday, trading activity is expected to be exceptionally light. In thin year-end trading, the euro held steady at $1.1747 and the pound at $1.3463. Both currencies are poised to record their strongest annual performances in eight years.

The US dollar index, which measures the greenback against a basket of six major peers, was flat at 98.228, clinging to modest gains from the previous session. For the year, the index has fallen 9.5 percent, while the euro has surged 13.5 percent and the pound has advanced 7.6 percent.