Institution: US Dollar Likely to Remain Under Pressure in 2026

BlockBeats News, December 29, Charles Stanley's Abbas Owainati stated in a report that after a significant devaluation 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 uncertainty weakening its safe-haven status, non-US investors increasing currency hedging operations, and changes in capital flows, among other factors.

He said that as the Fed is expected to further cut interest rates, the dollar may remain under pressure next year. He also stated that a weaker dollar could support emerging market stocks by easing the burden of external debt, improving capital flows, and increasing local currency returns. (FXStreet)