2025-12-30 08:24:36

The Fed accelerates its rate cuts, and the dollar market in 2026 is brewing a major shift.

To be honest, the logic of the dollar as a "safe haven hard currency" is being broken. According to the latest reports from overseas asset management institutions, the issue of US fiscal sustainability is becoming increasingly prominent. Coupled with rising policy uncertainties, the traditional safe asset status of the dollar is beginning to waver. This is not a temporary fluctuation but a structural change.

More importantly, the flow of global capital is quietly changing. Overseas institutions are increasing their dollar hedging positions while shifting towards assets denominated in non-USD currencies. As the Federal Reserve continues to cut rates, the dollar's interest rate advantage will be further eroded. A chain reaction unfolds—emerging market assets start attracting capital back, and those undervalued assets that were misjudged now have a chance for valuation recovery.

From an investment perspective, this signal is very clear: the downtrend in dollar assets has already begun, and the window for re-evaluating risk assets is just opening. When you see these changes, the real opportunities are not in dollar assets but in those undervalued non-USD assets. Now is the time to position.

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WenMoon42

· 12h ago

The myth of the US dollar as a hard currency should have been shattered long ago, and this time it's really different... I have already quietly positioned myself in that wave of undervalued assets in emerging markets, waiting to see the reversal.

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ForkTrooper

· 12h ago

The myth of the US dollar as the ultimate hard currency is finally coming to an end. I'm tired of this narrative... Is the spring of non-US assets here?

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YieldWhisperer

· 12h ago

Is the dollar's safe-haven attribute collapsing? Wake up, this kind of claim comes up every year, and it just hasn't materialized yet. But honestly, it's quite interesting that more and more people are optimistic about non-dollar assets. Be careful of herd mentality. Buying emerging markets during a rate-cut cycle? Sounds easy, but the risk of pitfalls isn't low either. Before positioning, calculate how long you can withstand a drawdown, or you're just comforting yourself. Will the Federal Reserve really keep cutting rates forever? That's the real core issue.

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StablecoinArbitrageur

· 12h ago

honestly the "structural shift" framing is just cope for people who got long usd too early. the real arb here isn't picking sides—it's the basis divergence between cex usd pairs and off-chain fx forwards. been quietly stacking those 12-15 bps spreads for weeks now while everyone argues macro.

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RiddleMaster

· 12h ago

This dollar playbook is truly no longer working. The interest rate spread is gone, the fiscal gap is still widening, and institutions are quietly fleeing... The springtime for non-dollar assets has arrived.

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