US dollar falls out of favour with CIOs rating it least favourite asset in Q2 2025

CIOs worried about Fed cuts

The US dollar was the most negatively rated asset class among wealth managers, as CIOs have turned away from the currency over the past year.

During the second quarter of 2025, sentiment towards the US dollar from CIOs received a net change of -78 compared to Q2 2024. This was due to expectations that the US Federal Reserve will cut ahead of other central banks, according to research from Asset Risk Consultants (ARC), along with growing worries regarding US deficits and credit downgrades. ARC also found that while the dollar was the most negatively rated asset, alternatives had the most positive response. 'Sweet spot' for short dated bonds as volatility grows and sales triple Dan Hurdley, managing director at ARC Researc...