Bank of America: The structural depreciation of the dollar is more likely to originate from Europe

PANews February 16 News, according to Jinshi reports, Bank of America believes that the US dollar remains unstable. Although there is widespread concern that some regions and countries around the world are reducing their reliance on dollar-denominated assets, more attention should be paid to the situation in Europe. Bank of America pointed out that regarding a new round of structural selling of the dollar, the focus should be on Europe, as the region’s holdings are mainly concentrated in stocks with a low hedge ratio. Currently, stock capital flows do not show signs of a large-scale withdrawal, but over time, incremental funds are more likely to flow into non-US markets, while also facing the risk of higher hedge ratios.