Jing Shun Investment Zhao Yaoting: The devaluation cycle of the US dollar may begin, and asset allocation is at a turning point.

date
08/07/2025
The global financial markets in 2025 are undergoing a profound transformation. Zhao Yaoting, Global Market Strategist for Invesco Asia Pacific, believes that with the continued uncertainty in the monetary policy path of the Federal Reserve, the US dollar may enter a new cycle of depreciation, with a potential depreciation of up to 5% in the second half of the year. This trend will have far-reaching implications for global asset allocation. "A weakening US dollar often means a window of opportunity for non-dollar assets, especially for emerging markets. The depreciation of the US dollar will significantly improve the financing environment and increase the return on assets denominated in local currency." Zhao Yaoting said that historical data shows that during a weak dollar cycle, international capital usually accelerates towards non-US markets with more attractive valuations, making this trend especially worth paying attention to in the current environment.