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| US Dollar Review |
The US Dollar Index's overall trend, revealed by trends of price, leverage, and time, are defined in The Matrix for subscribers.
Subscriber Comments
The Death Of The Dollar Will Be Greatly Exaggerated
Straight from the mouth of Wall Street-
The U.S. dollar posted its steepest first-half decline since 1973, falling about 11% in the first six months of 2025 and signaling the end of a long bull cycle that began in 2010. Although the dollar rebounded modestly in July, Morgan Stanley Research expects further weakening, potentially another 10% by the end of 2026, as U.S. growth and interest rates converge with those of other major economies.
Rising policy uncertainty, slowing U.S. growth, and expectations of Federal Reserve rate cuts have weighed on the currency, despite short-term support from stronger July economic data. A weaker dollar could raise import prices and dampen foreign investment in U.S. assets, while benefiting American exporters.
Additional downside risks come from foreign investors, who hold over $30 trillion in U.S. assets and are increasingly adding currency hedges. This shift toward hedging could generate sustained dollar selling and reinforce the longer-term depreciation trend.
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