U.S. Dollar Set for More Weakness as ‘Brand USA’ Falls Further Out of Favour
- The U.S. Dollar has experienced a significant decline, falling about 10.6% from its January highs amid growing market concerns and a recent Moody's credit rating downgrade.
- This slide follows persistent worries over ballooning U.S. Debt of $36.2 trillion, trade uncertainties, and weakening confidence in the dollar's safe-haven status.
- Foreign investors, especially in Asia, hold approximately $2.5 trillion in U.S. Dollar assets, and even a modest rise in hedge ratios could trigger significant dollar selling.
- George Vessey noted that, from a valuation standpoint, the dollar still has significant potential to decline further, while Steve Englander emphasized that the trend of dollar weakness has not yet come to an end.
- The dollar's decline signals mounting market anxiety about U.S. Fiscal policy and implies potential further depreciation alongside portfolio rebalancing away from dollar assets.
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Total News Sources21
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
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- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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