J.P. Morgan Warns of Global Currency Drop Amid De-Dollarization Trends

J.P. Morgan's latest analysis paints a bearish outlook for the US dollar, forecasting a 10% decline year-to-date through July 2025—the weakest first-half performance since 1980. The bank projects continued weakness through 2026, citing de-dollarization pressures and US economic moderation as key drivers.

Meera Chandan, co-head of Global FX Strategy at J.P. Morgan, highlights how policy shifts and broad-based tariffs are accelerating the dollar's downtrend. These factors are reshaping international finance, challenging the greenback's status as the dominant global reserve currency.

The report signals a potential inflection point in currency markets, with implications for cross-border trade and reserve allocations. While no specific cryptocurrencies are mentioned, such macroeconomic shifts often drive capital toward decentralized assets as hedges against fiat volatility.