[JPMorgan Expects Dollar Weakness by 2026, but Rate Hike Bets Could Be a Variable] JPMorgan predicts that the United States' loose monetary and fiscal policies will lead to a weaker dollar next year, forecasting a decline of about 3% in the dollar by mid-2026 before stabilizing. The drop against high-yielding currencies such as the Australian dollar and Norwegian krone could be even greater. However, JPMorgan warns that accelerated market bets on future rate hikes could challenge this forecast. JPMorgan's currency strategy team turned bearish on the dollar in March and has maintained this stance, citing factors such as upcoming rate cuts in the coming months, increased government spending, tax cuts under the 'Big and Beautiful' Act, and concerns over government intervention in Federal Reserve decisions as supporting their view.