Barclays: The US dollar may continue to decline.

date
22/05/2025
Barclays analysts stated in a report that the US dollar may continue to decline in the near future, but with the relative resilience of the US economy, the decline may be limited. The volatility in the bond market is creating an unfavorable environment for the dollar, and US trade policy errors, changes in tariff-related rhetoric, or weak data could further weaken the dollar. However, analysts predict that the dollar will not depreciate significantly. They said that the recent de-escalation of tariffs means that the economic losses in the US may be smaller than feared. In addition to concerns about the US budget deficit in the short term, Trump's fiscal stimulus plan is more likely to strengthen the dollar than choosing fiscal austerity.