De-dollarization accelerates: the dollar loses ground after changes at the Federal Reserve

The recent announcement regarding the Federal Reserve’s leadership triggered a brief rebound in the US dollar, but this gain was short-lived. International markets continue to pressure the currency, consolidating a downward trend that extends throughout the year. De-dollarization is emerging as an inevitable reality in the context of these market dynamics.

A fleeting recovery for the dollar

The nomination of new leadership at the Federal Reserve generated temporary optimism among market participants. However, this short-lived euphoria failed to reverse the deeper forces eroding the dollar’s position in global markets. According to sector analysis, market participants interpreted the leadership change as a sign of more aggressive policies from the institution, but this outlook was not enough to sustain the dollar’s upward momentum.

Structural factors behind the dollar’s weakness

The underlying causes driving the dollar’s loss of strength remain intact and continue to exert pressure on the currency. The US dollar has consistently weakened against the main G10 currencies throughout the year, reflecting more structural changes in the international financial architecture. This persistent weakness suggests that it is not merely cyclical fluctuations but a deeper reconfiguration of global monetary dynamics.

The de-dollarization outlook for 2026

The current trend points toward an acceleration of the de-dollarization process, with emerging and developed economies seeking alternative reserve assets. The dollar’s hegemonic role faces unprecedented challenges, while other assets and currencies gain relevance in international trade agreements. In this context, even administrative changes in key institutions like the Federal Reserve are insufficient to halt the relative decline of the US dollar.