US Dollar Will Remain Under Pressure, HSBC's Chew Says

HSBC’s Asia FX research head Joey Chew predicts the US dollar will stay weak in 2026 due to persistent political and structural challenges, signaling prolonged pressure on the currency. The forecast highlights political instability as a key driver, with US fiscal policies and geopolitical tensions likely undermining dollar strength amid shifting global economic dynamics. Structural issues, including high debt levels and slower growth relative to other major economies, further weigh on the dollar’s outlook, according to Chew’s analysis. Chew also addressed the Japanese yen, suggesting its performance will depend on Bank of Japan policy shifts and global risk sentiment, though details on its trajectory were not specified. The remarks were made in a February 2026 Bloomberg interview, emphasizing macroeconomic trends shaping currency markets through the year.