Chart of the week: King Dollar dethroned?

The might of the US economy combined with the dollar's long-term stability relative to other global currencies have made the greenback the world's primary reserve currency. That means the dollar is held in large amounts by many central banks and big financial institutions for international trade, investments, and other core economic functions—hence the "King Dollar" moniker. That role came under increasing scrutiny last year as the US dollar fell roughly 9%—the most since 2017. The drop was largely due to falling interest rates (the dollar tends to decline when rates go down), in addition to some economic volatility and fiscal policy uncertainty in the US. While rates might continue to fall in 2026 (fed funds futures predict 2 more rate cuts by the US central bank this year, which could put further pressure on the dollar), the greenback has found some support thus far.