The U.S. dollar saw a slight uptick at the start of 2026 following its sharpest annual DXY decline since 2017, driven by tariff concerns and reduced global dollar reliance.
On January 1, 2026, the U.S. dollar posted a modest gain despite ending 2025 with a 9.37% fall in the U.S. Dollar Index, its weakest yearly performance since 2017. The decline was fueled by investor concerns over President Donald Trump’s tariff policies and a global shift diversifying away from dollar holdings.