00:00The US dollar started the year on a weaker note, weighed down by expectations of further
00:05interest rate cuts from the Federal Reserve. It has fallen against most major currencies
00:10over the past year, as a narrowing interest rate gap allows other currencies to pose strong gains
00:16in 2025. The euro held around $1.175 in early Asian trading, after jumping 13.5% last year.
00:27While the sterling was trading near $1.3474, having climbed 7.7% in 2025. Overall, the dollar posted
00:37its biggest annual drop in eight years in 2025, weighed down by interest rate cuts, trade uncertainty
00:44and concerns over the independence of the Federal Reserve. Much of the focus at the start of the year
00:50will be on who US President Donald Trump picks to be the next Fed chair, as the term of current head
00:56Jerome Powell ends in May. Investors expect a more dovish choice that could cut rates
01:01after Trump repeatedly criticised the Fed for not easing faster.
