The coming months present headwinds for the greenback — the growing global momentum behind de-dollarisation, expected rate cuts over the next two Federal Open Market Committee (FOMC) meetings (at time of printing), and higher fiscal spending. Together, they signal a potential shift in confidence away from the dollar’s supremacy.
For decades, the US’ top global position was deemed largely as unshakable. US exceptionalism has been fuelled by strong economic growth, profitability, and innovation in the tech sector. The rest of the world has long converged in the US, where the greatest minds and ideas are matched with investor capital. This combination cements the dominance of the US dollar (USD) as the world’s primary reserve currency, and the most popular currency used for trading and investments.
But now, that dominance is being challenged.
