This edition’s insights come from Morningstar’s 2026 Global Outlook Report.

The US dollar has its weakest year in almost a decade

The US dollar weakened sharply in 2025, driven by fiscal concerns and reduced confidence in policy.

The selloff reflected a mix of persistent structural pressures and new vulnerabilities that intensified in 2025. Long-standing concerns included rising US debt burdens – exacerbated by the “Big Beautiful Bill” – and the gradual erosion of the US growth premium, particularly as tariff uncertainty clouded the economic outlook.

Meanwhile, new threats emerged. Global investors began increasing hedging of their US exposures, reversing years of reduced hedging when confidence in “US exceptionalism” was…