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The ongoing dynamics of foreign currencies may also affect companies' hedging behavior, as strategists note. They indicate that companies tend to increase hedging ratios during periods of dollar strength, but may now reduce them as the dollar declines. This can lead to reduced demand for the US dollar and reinforce its decline.

"The US dollar is still in the upper range of historical rates, and the cyclicality of hedging and rebalancing the index are important compounding considerations," the memo states.

Furthermore, reports indicate structural effects. With a weaker dollar, the US share in global bond and equity indices may decline, which could lead to decreased negative flows into US assets.