Deutsche Bank issued a note on July 9, 2026, warning of a changing risk profile for the U.S. dollar. Reuters reports that the U.S. now relies more on foreign equity investment than debt to fund its external deficit.
The Artificial Intelligence boom is driving significant capital into U.S. stocks. This shift makes the dollar increasingly susceptible to technology sector volatility.
Historically, countercyclical demand for U.S. Treasuries supported the dollar during economic downturns. A bank strategist noted that cyclical, retail-driven equity funding increases currency risk. Geopolitical tensions are also deterring some investors from U.S. debt.