BTC $71,807
2026 Bull Run Is Building Start trading with 5% OFF all fees
Sign Up Now
BTC $71,807
Bull Run 2026 | 5% Off Fees Open your Binance account today
Sign Up

Dollar Volatility Persists, De-Dollarization Seen Unlikely!!

2025’s dollar swings spark de‑dollarization talk, but experts say structural strengths keep the greenback dominant.

  • 2025 has seen sharp swings in the value of the US dollar, prompting renewed talk of de-dollarization.
  • The Federal Reserve’s interest-rate cuts have reduced investor demand for the dollar, according to a Investopedia report.
  • The current U.S. administration’s preference for a lower dollar has also weighed on the currency’s position.
  • Wells Fargo chief economist Tom Porcelli says the dollar could strengthen in the latter half of next year as the Fed ends easing and de-dollarization talk fades.
  • Marcello Estevão of the Institute of International Finance says the structural support for dollar dominance remains strong.

The US dollar has experienced wide swings through 2025 as market participants reacted to policy decisions and statements about currency preferences. Fed interest-rate cuts and signals from the U.S. administration favoring a lower dollar have reduced investor interest and triggered renewed discussion of de-dollarization. Experts quoted in recent notes say those claims may be overstated given structural strengths of the dollar system.

- Advertisement -

A Investopedia report details how the Fed’s easing stance contributed to the dollar’s volatility and made it less attractive to investors. Policy choices that lean toward a weaker dollar also played a notable role in the currency’s recent moves.

Wells Fargo chief economist Tom Porcelli wrote that the dollar’s outlook could improve if monetary policy shifts. “We expect the greenback to broadly strengthen in the back half of next year as the Fed ends its easing cycle and de-dollarization talk diminishes,” he wrote.

Marcello Estevão, chief economist at the Institute of International Finance, emphasized the dollar’s enduring strengths in a research note. “The structural foundation of dollar dominance remains intact, supported by deep and liquid markets, the global reach of U.S. financial institutions, and an unmatched supply of safe assets,” he wrote.

Taken together, the commentary suggests near-term volatility but stops short of declaring a clear shift away from dollar dominance. Analysts point to market liquidity, U.S. financial reach, and available safe assets as reasons the dollar still holds central global status.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -
Ad
Altseason Is Loading. Don't watch from the sidelines.
SOL $90.51
DOGE $0.0963
LINK $9.02
SUI $1.00
5% off fees when you sign up
Start Trading
Ad
Pay Less on Every Trade. For Life.
$10K/mo volume Save $60/yr
$50K/mo volume Save $300/yr
$100K/mo volume Save $600/yr
5% off all trading fees when you sign up
Claim Your Discount

Latest News

Tether backs Drift’s $150M hack recovery, eyes Solana

Tether is supporting a recovery plan for the hacked Solana exchange Drift Protocol, which...

Record Bitcoin Miner Selloff in Tightening Q1 2026 Market

Public Bitcoin miners like MARA and CleanSpark sold over 32,000 BTC in Q1 2026,...

Tether funds Drift hack victims in swap for USDT adoption

Tether will donate $127.5 million to help Solana-based exchange Drift Protocol recover $286 million...

Russia-linked crypto exchange Grinex shuts down after $13M hack

The sanctioned Russia-linked crypto exchange Grinex has halted operations after a major hack resulted...

Hayes: U.S.-Iran Conflict May Tank Bitcoin Before Liquidity Surge

Arthur Hayes described markets as being in a 'no trade zone' due to geopolitical...

Must Read

Top 5 Testing Tools For Blockchain Applications in 2022

Blockchain apps have been adopted popularly by some prominent industries due to its being a decentralized-designed technology. Furthermore, these apps eliminate the risks that...
Ad
Altseason Is Loading. These 4 coins are trending right now.
SOL $92.12
DOGE $0.0950
LINK $9.02
SUI $1.02
5% off spot fees when you sign up
Start Trading