Monday, September 21
The U.S. dollar's bubble-like overvaluation may have already popped, but some wonder if an equally vulnerable "anti-bubble" may just have taken its place. Amid the roller-coaster ride in U.S. stocks and bonds during the turbulent first half of 2025, one outcome was pretty clear and unequivocal: the dollar has had its worst start to any year in the floating exchange rate period. Pessimism surrounding the U.S. currency's direction mounted - confounding traditional drivers such as interest rate differentials, safe haven plays or even stock and commodity correlations. And an overwhelming consensus built that there is more weakness to come. Numerous reasons are cited for the greenback's recoil. Chief among them are U.S. policy uncertainty, the outperformance of overseas markets after years of U
