JPMorgan Warns of US Dollar Decline by 2026 Amid BRICS De-Dollarization Push
JPMorgan's 2026 dollar forecast projects a 3% decline, driven by Federal Reserve easing and BRICS nations' de-dollarization efforts. Strategists note the greenback could stabilize if U.S. economic data improves enough to halt Fed rate cuts.
BRICS currency initiatives—including alternative payment systems and non-USD trade settlements—are accelerating pressure on dollar dominance. The bloc's MOVE toward national currencies in cross-border transactions compounds existing headwinds from anticipated Fed policy shifts.
Market observers await clarity on whether resilient U.S. growth and sticky inflation can offset structural challenges to dollar hegemony. Cryptocurrencies may benefit from prolonged dollar weakness as investors seek non-traditional hedges.