Dollar Plunges to 8-Week Low: SocGen’s Bold Bet on a Swift Rebound
The greenback stumbles—hard. For eight straight weeks, it's been a one-way slide, rattling traditional portfolios and sending shockwaves through currency markets. But one major bank isn't joining the panic.
SocGen's Contrarian Call
Société Générale analysts are betting big that this dollar weakness is a temporary blip, not a long-term trend. They're pointing to structural pillars they believe will reassert themselves: relative yield advantages and the sheer inertia of the world's primary reserve currency. It's a classic case of betting on the house—even when the house looks a little shaky.
The Crypto Angle: A Volatile Hedge
While fiat wobbles, digital assets often catch a bid. A weaker dollar historically creates a favorable tailwind for Bitcoin and major altcoins, as investors seek alternatives outside the traditional system. This isn't about replacing the dollar tomorrow—it's about the market pricing in a more fragmented, multi-currency (and multi-asset) future. Every dip in fiat credibility is a drip-feed of validation for decentralized finance.
The Bottom Line
SocGen sees a bounce. The smart money in crypto, however, is watching the flow. Whether the dollar's decline is brief or the start of something bigger, the reaction in digital asset markets will be the real-time stress test for an old financial order. After all, in finance, a 'temporary adjustment' is often just what they call a permanent change until it's too late to pretend otherwise.
SocGen Predicts a New US Dollar Recovery Road: Details
In a new post uploaded by Walter Bloomberg, a notable media expert, Soc Gen has published a new theory about the US dollar, stating how the asset can be in its final stages of a downturn. To simplify this further, Soc Gen’s Kit Juckes shared how the American currency may be ending its near-end decline, adding how a possible rebound might be on the cards soon for the USD.
Juckes explained that the USD’s decline stems from Fed rate cuts and easy monetary and fiscal policies. He also noted that the dollar may regain momentum soon. He expects a strong rebound by mid-2026, driven by a sharp improvement in the US economic outlook.
DOLLAR COULD BE IN FINAL STAGES OF DOWNTURN
Societe Generale’s Kit Juckes says the dollar may be nearing the end of its decline. Near-term weakness is driven by expected Fed rate cuts, easy monetary and fiscal policies, and concerns over high equity valuations. However, stronger…
Contrary Opinions
While Soc Gen believes the US dollar might recover its lost grace sometime soon, experts like Morgan Stanley believe the US dollar may encounter more fluctuations in 2026.
