Dowling Securities: Stagnation is the latest risk facing the US dollar.

Dowling Securities' foreign exchange strategist stated that the possibility of the United States falling into stagflation has become the latest risk facing the strength of the US dollar, and against the backdrop of political interference in federal institutions, the dollar is gradually falling into the realm of "emerging market currencies". "Although the market seems to be ignoring inflation and focusing on slowing economic growth instead, this may be a mistake," wrote Dowling Securities' Jayati Bharadwaj, Linda Cheng, and Alex Loo in a report on Monday. "The latest US CPI report showed initial signs of tariff transmission to the consumer end, and despite downside surprises, the market still took a hawkish interpretation."