Increased United States dollar risk, likely to weaken the dollar

The risk to the dollar is increasing, and rising fiscal risk, weak economic data and uncertainty about the Fed ' s policy may increase the pressure on the dollar, despite its strong performance in the recent past. In 2026, the rise in the rate of return on United States Treasury debt attracted more capital inflows to United States dollar assets and supported the dollar. The United States dollar index tracks the performance of the United States dollar against the six major global currencies at 5:32 a.m. on Wednesday, the United States dollar index stood at 99.4. The increase of 1.15 per cent from the beginning of the year to the present date was a 52-week high of 101.80 on 24 June. The analyst, Charu Chanana, stated that higher rates of return on national debt might not necessarily support the dollar if investors felt that the rise in rates of return reflected fiscal risk, increased government borrowing or continued inflation, rather than growth in the United States or a tightening of Fed policies. Global bonds were sold this week, with 30-year sovereign debt yields reaching their highest since 2007. Chanana also noted that any break in the relationship between the rate of return and the strength of the United States dollar could have broader portfolio consequences。