{"id":7478,"date":"2025-12-24T10:39:00","date_gmt":"2025-12-24T06:39:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/dollar-slumps-yen-focus-2017-worst\/"},"modified":"2025-12-24T15:03:29","modified_gmt":"2025-12-24T11:03:29","slug":"dollar-slumps-yen-focus-2017-worst","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/dollar-slumps-yen-focus-2017-worst\/","title":{"rendered":"Dollar Faces Worst Year Since 2017: What This Means for Investors and Businesses in Oman"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes 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.15s}\r\n.hitv3sogbtn:hover{filter:brightness(1.15);transform:scale(1.04)}\r\n.hitv3sogbr{font-size:9px;color:rgba(255,255,255,.18);text-align:center;margin-top:5px;letter-spacing:.1em;text-transform:uppercase}\r\n\/* \u2500\u2500 Compact horizontal: 380\u2013599px (like 320\u00d7100) \u2500\u2500 *\/\r\n@container (min-width:380px) and (max-width:599px){\r\n  .hitv3soga{padding:12px 22px;gap:12px;min-height:100px}\r\n  .hitv3sogh{font-size:16px}\r\n  .hitv3sogs{display:none}\r\n  .hitv3sogbtn{padding:7px 16px;font-size:11px}\r\n}\r\n\/* \u2500\u2500 Mobile\/card: < 380px (like 300\u00d7250) \u2500\u2500 *\/\r\n@container (max-width:379px){\r\n  .hitv3soga{flex-direction:column;align-items:center;justify-content:space-between;min-height:260px;padding:22px 22px;gap:10px}\r\n  .hitv3sogc{align-items:center;text-align:center}\r\n  .hitv3sogh{font-size:22px;white-space:normal}\r\n  .hitv3sogs{font-size:11px;white-space:normal}\r\n  .hitv3sogbl{display:flex;align-self:center;text-align:left}\r\n  .hitv3sogbtn{width:100%;justify-content:center;padding:12px 20px}\r\n}\r\n\/* \u2500\u2500 Wide: >= 600px (leaderboard style) \u2500\u2500 *\/\r\n@container (min-width:600px){\r\n  .hitv3soga{min-height:90px}\r\n}\r\n<\/style><!-- HiT Land Banner \u2014 Container Query Responsive -->\r\n<div class=\"hitv3sogw\">\r\n<a class=\"hitv3soga\" href=\"https:\/\/hit.land\/services\/web-app-development\" target=\"_blank\" rel=\"noopener nofollow\" style=\"animation:hitv3sog-fadein 0.7s ease both;animation-delay:0s;\">\r\n  <div class=\"hitv3sogg1\" style=\"animation:hitv3sog-glow 3s ease-in-out infinite;\"><\/div>\r\n  <div class=\"hitv3sogg2\"><\/div>\r\n  <div class=\"hitv3soggl\" style=\"animation:hitv3sog-shimmer 3s ease-in-out infinite;\"><\/div>\r\n  \r\n  <div class=\"hitv3sogc\">\r\n    \r\n    <div style=\"display:inline-flex;align-self:flex-start;align-items:center;gap:6px;background:rgba(255,255,255,0.08);border:1px solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p><\/p>\n<p>SINGAPORE\/LONDON \u2014 The U.S. dollar weakened on Wednesday, poised for its largest annual decline since 2017, with potential for further losses as investors anticipate the Federal Reserve will continue cutting interest rates next year, even as other major central banks appear to have ended their easing cycles.<\/p>\n<p>Despite a robust U.S. GDP report on Tuesday, market expectations remained unchanged, pricing in approximately two additional Federal Reserve rate cuts in 2026. Goldman Sachs Chief U.S. Economist David Mericle noted, &quot;We expect the FOMC to compromise on two more 25 basis point cuts to 3-3.25%, with risks leaning towards even lower rates,&quot; attributing this outlook to slowing inflation.<\/p>\n<p>The euro and British pound each rose to fresh three-month highs on Wednesday, trading broadly steady at $1.180 and $1.3522, respectively. The dollar index, measuring the greenback against a basket of currencies, dropped to a two-and-a-half-month low of 97.767. It is on track to decline 9.8% for the year, marking its steepest yearly drop since 2017. Any further depreciation in the final week of 2025 could result in its biggest annual loss since 2003.<\/p>\n<p>The dollar\u2019s turbulent year has been influenced by former President Donald Trump\u2019s disruptive tariffs, which undermined confidence in U.S. assets, alongside concerns about his growing influence over the Federal Reserve\u2019s independence.<\/p>\n<p>In contrast, the euro has gained just over 14% in 2025, aiming for its best yearly performance since 2003. Last week, the European Central Bank held interest rates steady and raised some growth and inflation forecasts, signaling a reduced likelihood of further easing in the near term. As a result, traders now assign a slim chance of tightening by the ECB next year, a sentiment mirrored in Australia and New Zealand, where rate hikes are expected.<\/p>\n<p>This outlook boosted the Australian and New Zealand dollars, with the Australian dollar reaching a three-month high of $0.6710 on Wednesday, while the New Zealand dollar touched a two-and-a-half-month peak at $0.58475.<\/p>\n<p>Sterling has risen over 8% this year, with markets wagering that the Bank of England will cut rates at least once in early 2026, and there is about a 50% probability of a second cut before year-end.<\/p>\n<p>Despite these gains, most currencies have lost significant ground against precious metals like gold, which hit a new record high on Wednesday.<\/p>\n<p>Currencies from smaller European nations\u2014typically characterized by low debt\u2014have been among the best performers this year. The dollar has fallen 12% against the Norwegian krone, 13% against the Swiss franc (last trading at 0.7865 francs), and 17% against the Swedish krona, which dropped to its lowest level since early 2022 at 9.167 kronor on Wednesday.<\/p>\n<p><strong>Traders Turning Attention to Yen Intervention Risks<\/strong><\/p>\n<p>The Japanese yen remains a focal point in foreign exchange markets amid speculation about possible intervention by Japanese authorities to halt the yen\u2019s slide. Japan\u2019s Finance Minister Satsuki Katayama issued the strongest warning yet on Tokyo\u2019s readiness to intervene, stating the country has &quot;a free hand&quot; to manage excessive currency movements. Her statement helped reverse the yen\u2019s decline, with the dollar retreating 0.3% against the yen to 155.83 on Wednesday after a 0.5% drop the previous day.<\/p>\n<p>While the Bank of Japan last Friday enacted a widely anticipated rate hike, the market was left disappointed by Governor Kazuo Ueda\u2019s less hawkish tone than expected, which contributed to the yen\u2019s subsequent weakness. With trading volumes expected to thin toward year-end, analysts caution that this could be an ideal time for Japanese authorities to initiate yen-buying interventions.<\/p>\n<p>\u2014 End \u2014<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>The anticipated prolonged Federal Reserve rate cuts and the declining U.S. dollar create a <strong>strategic opportunity for Omani businesses and investors<\/strong> to explore diversified investments and hedge against currency risks, especially by considering assets in stronger currencies like the euro and precious metals such as gold. However, the volatility in global currency markets also underscores a <strong>risk of exchange rate fluctuations<\/strong>, urging entrepreneurs to adopt robust financial strategies, including potential currency hedging, to safeguard profitability. Smart investors should monitor central bank policies closely, as shifts\u2014especially in the yen and Fed moves\u2014could influence liquidity and capital flows impacting Oman&#8217;s investment climate.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar is set for its biggest yearly fall since 2017, with investors expecting further Federal Reserve rate cuts in 2026. The euro and pound reached three-month highs, while precious metals like gold hit record highs. The Japanese yen faces possible intervention to halt its decline.<\/p>\n","protected":false},"author":12,"featured_media":7479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[980,381,3226],"class_list":["post-7478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-currency-markets","tag-federal-reserve","tag-u-s-dollar"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2025\/12\/3234226.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=7478"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7478\/revisions"}],"predecessor-version":[{"id":7480,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/7478\/revisions\/7480"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/7479"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=7478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=7478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=7478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}