The U.S. dollar is on track for its largest annual decline in eight years, with the dollar spot index down 8.1% year-to-date. This drop is attributed to President Trump's push for a dovish Federal Reserve chair, which has fueled expectations of a more aggressive rate-cutting stance. The upcoming Fed leadership transition, expected to conclude in May, is anticipated to significantly impact the dollar's trajectory in early 2025. Market analysts predict at least two rate cuts next year, contrasting with tightening monetary policies in countries like Canada, Sweden, and Australia. This divergence in monetary policy is further eroding the dollar's attractiveness to investors, as they brace for potential shifts in the global economic landscape.