J.P. Morgan: The US dollar remains overvalued by 5 to 15% against major currencies.

JPMorgan believes that even if the US dollar hits a low point in this round, based on long-term valuation models, the US dollar against major currencies is still overvalued by 5% to 15%; as cyclical interest rate differentials narrow and asset allocation adjustments continue, there is room for the US dollar to decline. The bank's report pointed out that reasons supporting the expectation of further weakening of the US dollar include the narrowing economic advantage of the United States over other economies, slowing foreign capital inflows, and increasing safe-haven activities. The bank also continues to recommend that US investors diversify their international holdings, while non-US investors properly manage their exposure to the US dollar.