Part 3/4:
Analysts are cautioning that this may herald a longer-term trend of investors reducing their exposure to American assets. If the dollar continues to weaken and rate cuts materialize, it could lead to diminished attractiveness of US equities and bonds, prompting portfolio rebalancing towards other markets.
This potential shift underscores the importance of monitoring monetary policy developments, as they have profound implications not only for currency dynamics but also for investment flows and global economic stability.