BoA: The weakness of the US dollar is in vogue these days, but we think part of the narrative is overblown... Despite uncertainty and policy changes, the relative outperformance of the US shows no signs of cracking.
It is possible that some further dollar depreciation may follow. But there are limits to how much depreciation could take place, not least because monetary policy abroad would react to it. And if the story is about fiscal, debasement, or geopolitical risks, then we should be asking ourselves how much more room to run real assets may have.
