The US dollar held at 97.9 on Friday, remaining at its lowest level since early October, as investors expect the Federal Reserve will lower borrowing costs again next year. Strong GDP data released on Tuesday had little impact on the rate outlook, with markets still pricing in two additional cuts in 2026. However, Fed officials remain divided over their next move, with most projecting only one more reduction. Adding to pressure on the dollar, precious metals have gained on safe-haven demand amid rising geopolitical tensions. So far this year, the dollar has fallen 9.7%, on track for its weakest annual performance since 2017. Pressure on the greenback intensified earlier this year amid President Donald Trump’s aggressive tariff policies and threats to the Fed’s independence.