JP Morgan: Risks Signal Change, Not Collapse for the US Dollar
JP Morgan’s forecast for the dollar indicates the currency will weaken gradually over the coming months, not collapse suddenly. The bank expects the dollar to lose a few more percentage points against major currencies by year-end, with risks tilted to the downside. What’s driving the dollar’s decline according to JP Morgan includes trade policy uncertainty, tariff rollouts, and also fiscal concerns about potential Congressional legislation that could substantially increase the budget deficit. Despite fears of a crisis surrounding the dollar, the firm’s Analysis shows the currency falling represents a significant adjustment rather than an existential threat. At the time of writing, the dollar still accounts for 60% of foreign exchange reserves and 85% of SWIFT settlements, which protects its reserve status even as weakness continues. Also Read: JP Morgan Sees Opportunity After Rate Cut as US Dollar Softens JP Morgan’s Dollar Forecast And Insights On Decline...