Viewpoint: Policy instability and fiscal pressure may lead to further declines in the dollar

ChainCatcher news, Baosheng Group economist David A. Meier stated that due to unstable policy-making and increasing fiscal pressure, the dollar may continue its downward trend.

He pointed out that since reaching its peak in September 2022, the dollar has depreciated by about 15%, and recent U.S. policy-making has further impacted the currency value, extending the bear market. Whether the dollar's safe-haven characteristics are being challenged remains inconclusive, as the dollar often weakens when the U.S. becomes a source of risk aversion.

He added that although the likelihood of bad news causing volatility remains high, if unstable policy-making converges, it will restore market confidence in the dollar and create a positive risk scenario.