Opinion: Policy instability and fiscal pressure may cause the US dollar to continue to fall
Online reports that David A., economist at Baosheng Group. Meier said that due to unstable policy formulation and increased fiscal pressure, the US dollar may continue its downward trend. He pointed out that since reaching a peak in September 2022, the US dollar has depreciated by about 15%, and recent policy developments in the United States have further impacted the currency and extended the bear market. Whether the dollar's safe-haven characteristics are being challenged is still open, because the dollar tends to weaken when the United States becomes a source of risk aversion. He added that while the possibility of bad news that triggered fluctuations remained high, if unstable policy formulation were to be curbed, it would restore market trust in the dollar and constitute a positive risk scenario.
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