U.S. Dollar Expected to Drop Further This Summer, Says Bank of America
Bank of America forecasts a challenging summer for the U.S. dollar, which has declined nearly 9% to 99.74 this year due to President Trump's tariff policies. Key points include:
- Continued weakness expected in the dollar, perceived as beneficial for dollar-denominated assets like gold and bitcoin.
- Tariffs are seen as harmful to the U.S. economy, given its extensive global trade.
- The report highlights resilience in the U.S. economy but notes that negative factors outweigh positives.
- Companies may delay hiring and investment due to policy uncertainty.
- High borrowing costs arise from loosening fiscal policy amid record debt levels.
- Recent economic indicators suggest a potential slowdown, with the weekly Dallas Fed economic index hitting its lowest since December.
