UBS Wealth Management CIO: Maintaining the view that the US dollar may weaken in the medium term.

UBS Wealth Management Investment Director's office released an institutional viewpoint stating that they maintain the view that the US dollar may weaken in the medium term, considering the possibility that the Federal Reserve may begin cutting interest rates later this year. They expect the depreciation trend of the US dollar against many G10 and emerging market currencies to continue until the end of the year. However, they also remind investors to be cautious about the possibility of further weakening of the US dollar in the short term - negotiations between the US and Iran are still ongoing, and the Strait of Hormuz is still technically closed. It is advisable to avoid making definitive judgments on the short-term trend of the US dollar at this stage and instead lean towards selling volatility strategies. Additionally, they still have a positive outlook on the Australian dollar, Chinese yuan, and certain high-yield emerging market currencies.