Bank of America: Global investors are reducing their exposure to the US dollar due to concerns about the US fiscal situation and other factors.

Bank of America's foreign exchange and interest rate sentiment survey for May shows that, due to concerns about the US fiscal outlook and various other worries, international investors are reducing their exposure to the US dollar. Bank of America stated that selling the US dollar has become the "most confident trade seen for the first time in 2025", with confidence exceeding that of buying government bonds. Bank of America's strategic analysts stated in a report that the euro could be the biggest beneficiary due to decreased demand for the US dollar. The euro rose 0.2% against the US dollar, reaching a latest rate of 1.1254 US dollars, although this exchange rate is still far below the peak of 1.1574 US dollars on April 21st.