Viewpoint: Policy instability and fiscal pressure may lead to continued decline of the US dollar

According to Golden Finance, David A. Meier, an economist at Baosheng Group, stated that the US dollar may continue its downward trend due to unstable policy-making and increased fiscal pressure. He pointed out that since reaching its peak in September 2022, the US dollar has depreciated by about 15%, and recent policy developments in the US have further impacted the currency value and prolonged the bear market. There is no consensus on whether the safe haven nature of the US dollar is being challenged, as the dollar tends to weaken when the US becomes a source of risk aversion. He added that although the possibility of bad news causing volatility is still high, if unstable policy-making is restrained, it will restore market trust in the US dollar and create a positive risk scenario.