Institution: The US Dollar May Continue to Face Pressure in 2026

BlockBeats News, December 29, Abbas Owainati of Charles Stanley stated in a report that after significant depreciation this year, the US dollar will continue to face challenges in 2026. This year's decline in the dollar reflects multiple factors, including market concerns over long-term fiscal sustainability, policy uncertainty weakening its status as a safe-haven currency, increased currency hedging operations by non-US investors, and changes in capital flows. He noted that, as the Federal Reserve is expected to further cut interest rates, the dollar may remain under pressure next year. He also mentioned that a weaker dollar could support emerging market equities by alleviating external debt burdens, improving capital flows, and increasing returns on local currencies. (Jin10)