Institution: Weakness in the US dollar selling off US assets, but entering the second year of weakness may raise doubts.

Investment management company Federated Hermes stated that despite the stability of the US stock and bond markets this month, the US dollar has still experienced a substantial decline, indicating that global investors are increasing hedging operations to cope with the weakness of the dollar, rather than directly selling US assets. Senior fixed-income portfolio manager John Sidaway predicted that this trend will continue and put pressure on the US dollar in 2026, ultimately leading to a deeper questioning of the long-term value of the world's major reserve currencies. He stated that if the weakening trend of the US dollar continues into a second year, it may signal a gradual weakening of the US dollar's long-standing dominant position.