Further This Summer, Bank of America Warns

Weakness in the U.S. dollar is widely seen as positive for dollar-denominated assets, such as bitcoin and gold.

By Omkar Godbole|Edited by Parikshit Mishra

Updated June 2, 2025, 6:55 PM. Published June 2, 2025, 2:35 PM. Translated by AI

What to know:

  • Bank of America warns that the U.S. dollar may face further declines this summer, following a 9% drop this year due to tariff concerns.

  • The dollar's weakness could benefit dollar-denominated assets like gold and bitcoin.

  • Trade policy uncertainty and high debt levels could continue to weigh over USD, with potential economic slowdown indicated by high-frequency data.

Bank of America has warned that the U.S. dollar could be in for a rough summer, having already dropped sharply this year.

The dollar index, which tracks the value of the U.S. dollar against major currencies, has dropped nearly 9% to 99.74 this year, as President Donald Trump's tariff war triggered a shift away from U.S. assets.