Stephen Jen Quoted in Reuters: “Dollar Set for More Weakness as ‘Brand USA’ Falls Further Out of Favor”
Reuters, May 19, 2025
In a recent Reuters article, the U.S. dollar’s weakening trajectory is explored in the context of trade frictions, fiscal stress, and diminished investor confidence in American economic exceptionalism. The piece highlights growing concerns over valuation, safe-haven status, and the global implications of any shift in USD asset holdings.
Stephen Jen and Joana Freire of Eurizon SLJ Capital warn that the dollar may be vulnerable to repositioning pressures from Asia:
“USD hoardings of about $2.5 trillion by Asian exporters and institutional investors ‘pose sharp downside risks to the dollar vis-à-vis these Asian currencies,’” they wrote in a recent research note.
The article notes that while the dollar has seen sharp corrections this year, selling pressure could increase further as hedge ratios rise and long-standing reserve allocations are reassessed.
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