Leading multinational financial services company Wells Fargo wrote in its latest piece to stakeholders that the best investment option now is to accumulate the dips on the US dollar. The DXY index has fallen to a low of 97 on Monday and had briefly dipped to 96.80 last week. The USD is now more than 10% year-to-date and has fallen to its three-year low. Local currencies are generating more profits in the currency markets this quarter than the greenback.
Also Read: Texas Governor Abbott Signs Gold & Silver Legal Tender Law
The downward trend is spiraling steadily with little to no sight of an upward trajectory on the horizon. Leading currencies like the euro and krona, along with top Asian currencies are outperforming the USD in 2025. Investors no longer see the greenback as a safe haven as it’s now mired with tariffs and an ever-growing debt. However, Wells Fargo believes that the dip is temporary and the US dollar will regain its dominance by Q3 of 2026.
Wells Fargo: Accumulate the US Dollar Dips & Wait Till 2026
The short-term prediction for the USD remains on the back foot while the long-term forecast is positive. Wells Fargo wrote that the US dollar will dip for the rest of 2025 while the euro will surge. The investment bank stated that the euro could stay stable at 1.17 to 1.20 and might not gather further momentum.
Also Read: Global Money Flees the US As De-Dollarization Explodes
Wells Fargo wrote that it sees potential in the US dollar during Q3 of 2026 as tax cuts help underpin the American economy. The bank wrote in its latest piece that it does not expect the Feds to cut interest rates next year. In this context, the investment bank expects the US dollar to rebound in value and reclaim its glory in 2026. Therefore, buying the greenback at its lowest point is advisable as it might not be available for long.