US Dollar Predicted to Plummet in Early 2026 Before Reversing Course

Jakarta, Pintu News – In 2025, the US dollar experienced a significant drop in value, triggered by Trump’s controversial tariff policies. However, predictions for 2026 suggest that the currency will face more turbulence before finally finding momentum for recovery.

Further Decline in 2026

The US dollar is expected to experience a further decline by 2026. Analysts state that the combination of massive macroeconomic development and Trump’s continued spending on the One Big Beautiful Bill will worsen the dollar’s condition. The DXY index, which measures the value of the dollar against a basket of other currencies, is expected to drop to 94.

At the same time, high volatility will continue to color the movement of this currency. Strategists have observed the formation of a V pattern on the exchange rate chart, signaling a sharp decline followed by a quick recovery.

Also Read: XRP 2026 Price Prediction: Is This Investment Still Promising?

Possible Recovery in Mid-2026

Despite facing tough challenges in the first half of the year, there is hope that the US dollar will reverse its fortunes by mid-2026. Experts add that new government policies to be implemented in the second half of the year, including trade tariffs that support inflation, may help strengthen the dollar’s position.

Jane Foley of Rabobank, in a report to Reuters, stated that while the dollar may continue to decline, it will not fall drastically. Price movements are expected to take place within a volatile but manageable range.

Broader Implications for the Global Economy

The decline in the value of the US dollar not only impacts the foreign exchange market, but also has wider implications for the global economy. A weaker currency can affect imports and exports, as well as dollar-related global exchange rates. In addition, volatile US economic policies can affect foreign direct investment and investor confidence. This demonstrates the importance of currency stability in the context of an interconnected global economy.

Conclusion

Looking ahead, market participants and policymakers should prepare themselves for changing and unpredictable dynamics. Despite the challenges, appropriate and responsive policy measures can help minimize the negative impact and capitalize on the recovery potential of the US dollar.

Also Read: Raydium Price Prediction 2026: Significant Upside Potential in the Solana Ecosystem

Follow us on Google News to get the latest information about crypto and blockchain technology. Check Bitcoin price today, Solana price today, Pepe coin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Watcher Guru. US Dollar Could Break Down in Early 2026, Then Reverse Course. Accessed on January 12, 2026