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The U.S. Dollar Hit a 3-Year Low, But Is the World Really 'De-Dollarizing'?

1. U.S. dollar hits lowest level since March 2022, raising concerns. 2. Dollar index shows a 9% decline, the worst first half since 2002. 3. Analysts disagree on de-dollarization, indicating strong ongoing demand for dollars. 4. NBFI assets doubled since 2009, reflecting robust dollar demand. 5. Stablecoin legislation may enhance dollar's status as a global reserve currency.

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FAQ

Why Bullish?

A stronger long-term demand for U.S. equities is indicated by dollar inflow prospects and stablecoin developments, improving S&P 500 performance overall.

How important is it?

Indications of stable dollar demand and decreasing interest expenses can invigorate the S&P 500, given its tendency to correlate with broader economic trends.

Why Long Term?

The trends of stablecoin adoption and NBFI growth could take time to manifest fully, but strong underlying dollar demand is likely to uplift markets in the long run.

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