After a dramatic 2025, when US President Donald Trump's tariff announcements sent the dollar tumbling, traders of the currency were expecting a quieter year.
Recent weeks have shattered that complacency.
The dollar dropped to its lowest point in four years on Tuesday against a basket of currencies, hitting multi-year lows against the Euro and the pound as it fell 3% in roughly a week.
That slide has since slowed down, but analysts say the reprieve is likely to be temporary.
"Most people would think the dollar should, could, and would weaken further this year," said Chris Turner, global head of financial market research at ING. "The jury's out on the timing but less so on the direction."
