The US dollar is weakening due to trade uncertainties, rising fiscal debt, and waning confidence in US exceptionalism. Investors are reducing exposure to US assets, and the dollar's high valuation makes further depreciation likely. Despite a recent truce in the US-China trade war, Moody's downgrade of US sovereign credit rating has renewed selling pressure. The dollar index has fallen significantly from its January highs, and speculators are increasingly bearish. While the dollar has stabilized somewhat, long-term concerns remain.
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