The dollar is on track for its worst year since 2017, down 8% in 2025. Traders are preparing for more downside in the final sessions of the year and beyond, with the options market signaling further declines. Speculative traders have flipped to betting against the dollar for the first time since October.

The US economy grew at a 4.3% annualized pace in the third quarter, the fastest in two years, driven by consumer and business spending. The strong growth has led to concerns about a potential sharp rebound in the dollar if upcoming data prompts a hawkish reassessment of Fed expectations.

Canada’s economy rebounded in November after a drop in October, causing the Canadian dollar to jump to its strongest level since July against the greenback. Meanwhile, the Swedish krona, the best performer among Group-of-10 peers this year, rose to its strongest level since February 2022 on Tuesday.

Read more at Yahoo Finance: Dollar’s Worst Drop Since 2017 Has Further to Go, Options Signal