Qatar National Bank (QNB) said there is room for further adjustments to the US dollar's valuations, suggesting the currency is likely to move towards more moderate levels.
The bank explained in its weekly report that foreign exchange markets clearly reflect macroeconomic trends, noting that the dollar index fell by about 9.6% during 2025, recording one of its weakest levels in nearly ten years, at a time when major currencies made significant gains against the dollar.
The report noted the lack of a clear consensus among analysts and investors regarding the future path of the US currency, as one group believes that the dollar will remain strongly supported by the US economy, productivity growth, and the availability of high-quality assets, while other indicators suggest that the currency still faces room for further decline.
The report based its analysis on three main factors, foremost among them the continued rise in US dollar valuations, along with expectations of narrowing gaps in economic growth and interest rates between the United States and the rest of the advanced economies, as well as estimates indicating that global investment portfolios are moving towards achieving a broader balance during 2026.
