The decline of the U.S. dollar has long been anticipated by financial experts, as evident in its recent 10% drop year-to-date against other currencies. While foreign equities are likely to thrive in a weak dollar environment, the U.S. remains heavily invested in AI, which could mitigate trends favoring international assets. President Trump's tariff approach may have negatively impacted the dollar’s value, opening the door for the 'Sell America' trade. Comments from Bill Sterling indicate that further dollar decline is possible as unfavorable tariffs affect U.S. growth.
Many on Wall Street believe the greenback's decline has been a long time coming, and shorting the dollar has become one of the world's most popular trades.
A weaker greenback now appears to be giving foreign equities a chance to catch up. But with America still the primary hub of the AI revolution, U.S. assets could be primed to buck historical trends.
In the scheme of things, there's ample room for the dollar to decline further... If tariffs continue to weigh on America's growth outlook, U.S. assets become less appealing.
That's the steepest loss for the greenback in the first half of the year, per Reuters, since 1986, shortly after the U.S. and several allies had reached an agreement, known as the Plaza Accord.
Collection
[
|
...
]