Institution: The US dollar may continue to be under pressure until 2026

Odaily Planet Daily reported that 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. The dollar’s decline this year reflects market concerns about long-term fiscal sustainability, policy uncertainties weakening its safe-haven status, increased currency hedging by non-US investors, and changes in capital flows. He said that with the Federal Reserve expected to further cut interest rates, the dollar may continue to be under pressure next year. He also mentioned that a softening dollar could support emerging market stocks by easing external debt burdens, improving capital flows, and increasing local currency returns. (Jin10)