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The dollar is struggling to rebound since ‘liberation day.’ Why it may keep falling. - MarketWatch

1. The U.S. dollar has declined since Trump’s ‘liberation day’ tariffs. 2. S&P 500 has recovered while the dollar remains under pressure. 3. BofA predicts summer of anxiety due to tariffs and fiscal concerns. 4. Medium-term outlook for the dollar remains bearish due to economic risks. 5. Investors see lower dollar exchange rates as U.S. exceptionalism wanes.

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FAQ

Why Bearish?

The bearish outlook on the dollar suggests potential economic slowdowns, impacting S&P 500 performance.

How important is it?

The article discusses economic impacts directly linked to factors influencing S&P 500 valuations.

Why Long Term?

The scenarios outlined indicate ongoing risks that could persist, affecting investor sentiment and economic activity.

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