The dollar is expected to remain weak in 2026, after its worst decline in years, amid a slew of factors that are keeping market watchers on edge. “The fate of the US dollar will continue to be a big story in 2026,” said Gregor Hirt, chief investment officer at Allianz Global Investors. Why dollar's strength mattersThe US dollar, the world's biggest reserve currency, ended last year tumbling about 9 per cent against a basket of currencies for its worst showing since 2017. Unlike gold, which has an inverse effect on the dollar, currencies weaken when interest rates are cut. In emerging markets, for instance, stablecoins could be used domestically as an alternative to local currency, broadening dollar access but challenging monetary control if domestic currency use declines, supporting the dollar, analysts at US asset manager BlackRock said in its 2026 Global Outlook.

Source: Ethiopian News January 01, 2026 16:59 UTC