Saudi Press

Saudi Arabia and the world
Thursday, Jul 03, 2025

U.S. dollar down, still set for best year since 2015

U.S. dollar down, still set for best year since 2015

The dollar was on track to post its best year since 2015 on Friday in the last trading day of a year dominated by Federal Reserve rate hikes and fears of a sharp slowdown in global growth.
As 2022 draws to a close, the dollar was set to notch a 7.9% annual gain against a basket of currencies - its biggest annual jump in seven years. But the dollar has pared gains in recent weeks as investors look for signs of when the Fed's interest-rate-hiking cycle might end.

The Fed has raised rates by a total of 425 basis points since March in an attempt to curb surging inflation.

With liquidity lower due to holidays, the dollar index was down around 0.433% on the day at 103.530 .

"I think everyone is struggling with the question of whether the big problem in 2023 will be weak growth or stubborn inflation," said Adam Button, chief currency analyst at ForexLive. "If it's weak growth, the U.S. dollar will fall. If it's high inflation, then the U.S. dollar will rally."

The euro was up 0.34% on the day to $1.0697 , on pace for a 5.9% annual loss versus the dollar, compared with last year's 7% drop. A combination of weak euro-zone growth, the war in Ukraine and the Fed's hawkishness has put the euro under pressure this year.

"Higher rates paired with stronger economic growth are helping to pull flows into the euro area, but any of that is at risk, particularly if energy prices do rise again, or the [European Central Bank] starts to turn less hawkish," said Karl Schamotta, chief market strategist at Corpay.

The British pound was last up 0.09% at $1.2063, on pace for a 10.8% annual drop .

The Australian dollar, seen as a liquid proxy for risk appetite, was up 0.41% on the day at $0.681 , but set to drop 6.4% on the year overall.

China's offshore yuan was down 0.73% against the U.S. dollar at $6.9215 . It was on pace to drop 8.7% this year, hurt by dollar strength and a domestic economic slowdown.

Optimism about China's reopening after three years of strict COVID-19 curbs has been tempered by surging infections that threaten more economic disruptions.

Jan Von Gerich, chief analyst at Nordea, said China's reopening "will be a source of volatility."

“But when we get past that, when we really get to the really positive economic impact, I think it should boost risk appetite globally," he said.

The U.S. dollar was down around 1.63% against the Japanese yen, at 130.860. .

The Bank of Japan's ultra-dovish stance has the dollar set to gain 13.7% versus the yen this year, in the yen's worst performance since 2013.

The Swiss franc was steady versus the dollar, at 0.923 .

The Swiss National Bank increased the amount of the Swiss currency it sold in the third quarter of 2022, the central bank said on Friday, indicating that its focus has switched from stemming the franc's strength to fighting inflation.

In cryptocurrencies, bitcoin last fell 0.26% to $16,550, down more than 64% so far in 2022.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
×