Institutions predict that the dollar will continue to be under pressure in 2026

According to a report by Jinshi, Abbas Owainati of Charles Stanley stated that the dollar will continue to face challenges in 2026, mainly due to concerns about long-term fiscal sustainability, policy uncertainty undermining its safe-haven status, increased currency hedging by non-U.S. investors, and changes in capital flows. He pointed out that the dollar may remain under pressure next year, as the Federal Reserve is expected to further cut interest rates. A weaker dollar could support emerging market equities by alleviating external debt burdens, improving capital flows, and increasing local currency returns.