Dollar Holds Gains Amid Inflation Data Anticipation, Forecasts Predict 10% Drop in 2025
NEW YORK – The US dollar maintained recent gains Wednesday, October 9, 2025, as traders braced for upcoming inflation reports expected to influence Federal Reserve interest rate decisions.While the greenback remains robust following a 0.3% increase on Tuesday, analysts predict a significant weakening-possibly a 10% decline-throughout 2025, citing volatile US trade policies and anticipated interest rate cuts.
The dollar’s performance is closely watched by businesses, investors, and consumers worldwide, as fluctuations impact the cost of imports, international investments, and global economic stability. A weakening dollar coudl boost US exports but also contribute to inflationary pressures. The anticipated shift is driven by a combination of factors, including President Trump’s past imposition of customs duties and attempts to influence the Federal Reserve, alongside evolving economic forecasts.
The dollar index,measuring the US currency’s value against six major currencies,reached 97.834 points, according to Reuters data.
Here’s a snapshot of other key foreign exchange rates as of Wednesday:
Euro: $1.1985 (down 0.5% from the previous session)
Pound Sterling: $1.3522
Japanese Yen: $147.42 (unchanged)
Australian Dollar: $0.6587 (near a seven-week high)
Currency markets experienced some uncertainty during Asian trading hours, contributing to the observed oscillations. Experts interviewed by Reuters suggest the predicted 10% decrease in the dollar’s value reflects a broader expectation of shifting monetary policy and a recalibration of global trade dynamics.
