US Dollar Primed To Weaken Further in 2026, According to Deutsche Bank Analyst – Here’s Why
An analyst at banking giant Deutsche Bank says the US dollar will continue to slide in 2026.
In a new interview with Bloomberg Television, George Saravelos, global head of foreign exchange research at Deutsche Bank, says the US dollar will continue to weaken even after a rough 2025, though at a slower pace.
“The full year drop in the dollar in ’25 was the second biggest drop on record since [the] free floating exchange rate started after Bretton Woods. So it was a very big year for foreign exchange. I would argue it’s going to be very difficult to repeat that type of move in 26.”
According to Saravelos, the dollar losing its status as the world’s highest yielding currency in developed nations as well as other countries stimulating their economies is going to hurt its value.
“The dollar is no longer the world’s highest yielding currency in developed markets, at least because the Fed’s been cutting rates, as everyone else has stopped doing the same. And empirically, the dollar being a high yield is a big deal.
And when it no longer is a high yield and you’ve got other currencies now, for example, in Australia or in Norway taking on that property, that removes a big tailwind for the dollar. So that’s number one…
Number two is if you look at the global composition of growth over the last few years, the US was leading the pack and what you’ve seen over the last 12 months is global growth broadening out to other economies as well. Europe is doing fiscal stimulus. Japan is potentially joining.
So overall, a solid global growth outlook. But with growth convergence and the dollar being less of a high yield plus a very large external deficit that’s very reliant on inflows. That’s pretty much the mix that I think should allow the dollar to continue to weaken, but at a much slower pace than we saw last year.”
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post US Dollar Primed To Weaken Further in 2026, According to Deutsche Bank Analyst – Here’s Why appeared first on The Daily Hodl.
You May Also Like
What John Harbaugh And Mike Tomlin’s Departures Mean For NFL Coaching
Twitter founder's "weekend experiment": Bitchat encryption software becomes a "communication Noah's Ark"
