Institutions predict the US dollar will likely remain under pressure in 2026.

According to a report by TechFlow Data on December 29th, Charles Stanley's Abbas Owainati stated in a report 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 that the dollar may continue to be under pressure next year as the Federal Reserve is expected to further cut interest rates. 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.