On the first trading day of 2026, the dollar edged higher, although it remains weak following the dollar index’s worst year since 2017.Data from LSEG shows that the DXY index, which measures the dollar’s value against a basket of trade-weighted currencies, fell 9.37% in 2025. Concerns over Donald Trump’s tariff policies, increased diversification into the safe-haven dollar by investors, and a rise in hedging against the risk of dollar depreciation collectively contributed to the currency’s weakness.