Analysts: Dollar poised for biggest annual drop in eight years; Fed drama to be the focus next year.

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According to ME News, the US dollar is poised for its biggest annual drop in eight years on December 31 (UTC+8), with investors saying it could fall further if the next Federal Reserve chairman chooses to cut interest rates as expected. Following its plunge after Trump announced a series of tariffs in April, the dollar faces continued pressure as the government actively pushes for the appointment of a dovish Fed chairman next year. Nomura Securities currency strategist Yusuke Miyairi stated, "The biggest factor affecting the dollar in the first quarter will be the Federal Reserve. This isn't just about the January and March meetings, but about who will be the Fed chairman after Powell's term ends." (Source: ME)

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