Institutions predict the US dollar may continue to face pressure in 2026.

In a report, Charles Stanley's Abbas Owainati stated that the US dollar will continue to face challenges in 2026 after its significant depreciation this year. The dollar's decline this year reflects multiple factors, including market concerns about long-term fiscal sustainability, policy uncertainty weakening its safe-haven currency status, increased currency hedging by non-US investors, and changes in capital flows. He said the dollar is likely to remain under pressure next year as the Federal Reserve is expected to cut interest rates further. He also stated that a weaker dollar could support emerging market equities by easing external debt burdens, improving capital flows, and increasing local currency returns. (Jinshi)