Dollar on Track for Annual Decline Amid Stable Yen, Rebounding Euro, Pound Sterling

New york: The dollar held steady on Wednesday but is on track for its biggest annual decline since 2017, as interest rate cuts, along with concerns about the volatile financial and trade policies in the United States, cast a shadow over currency markets in 2025. According to Yemen News Agency, the dollar index, which measures the performance of the US currency against six other major currencies, stood at 98.228 points, holding onto Tuesday's gains. The index is projected to fall 9.5 percent in 2025, while the euro has risen 13.5 percent and the pound sterling has climbed 7.6 percent. The euro settled at $1.1747, while the pound sterling reached $1.3463 on the last trading day of the year. Both currencies are on track for their biggest annual gains in eight years. The Japanese yen held steady at 156.35 against the dollar. The Australian dollar was last trading at US$0.66965, on track for a gain of more than 8% this year, its best annual performance since 2020. Meanwhile, the New Zealand dollar edged down sl ightly to US$0.57875, but is still headed for a 3.4% annual gain, ending a four-year losing streak.