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

PANews, February 16th – According to Jinse Finance, Bank of America believes that the US dollar is currently still in an unstable state. Although there is widespread attention on some regions and countries around the world reducing their reliance on dollar-denominated assets, more attention should be paid to the situation in Europe. Bank of America points out that, in terms of a new round of structural sell-off of the dollar, the focus should be on Europe, as the region's holdings are mainly concentrated in equities and the hedge ratio is relatively low. Currently, equity fund flows do not show signs of large-scale withdrawal, but over time, incremental funds seem more likely to flow into non-US markets, while also facing the risk of higher hedge ratios.