The greenback’s wave: An unquenchable thirst for U.S. assets may spell more pain for other currencies in 2026’s second half

The dollar enters the second half of 2026 on a strong footing, supported by bets on higher U.S. interest rates and continued foreign demand for U.S. assets. The article frames this as an extension of “American exceptionalism,” implying additional pressure on other major currencies. The outlook has broad market implications because it reflects both rate expectations and cross-border capital flows.

Analysis

The dollar enters the second half of 2026 on a strong footing, supported by bets on higher U.S. interest rates and continued foreign demand for U.S. assets. The article frames this as an extension of “American exceptionalism,” implying additional pressure on other major currencies. The outlook has broad market implications because it reflects both rate expectations and cross-border capital flows.