Bank of America: The structural depreciation of the dollar is more likely to originate from Europe.

PANews reported on February 16th that, according to Jinshi, Bank of America believes the US dollar remains unstable. While there is widespread attention on some regions and countries reducing their reliance on dollar-denominated assets, the situation in Europe warrants closer attention. Bank of America points out that the focus for a new round of structural selling of the dollar should be on Europe, as holdings in this region are primarily concentrated in equities with low hedging ratios. Currently, there are no signs of a large-scale withdrawal of funds from equities, but over time, incremental funds seem more likely to flow to non-US markets, while also facing the risk of higher hedging ratios.