Dollar slump puts pressure on global central banks: Devalue their currencies or stay strong?

The dollar’s drop has prompted safe haven currencies such as the Japanese yen and the Swiss franc to rise by over 10%. However, this situation complicates exports for countries reliant on global sales.

Investor sentiment towards the dollar has hit a 20-year low, with 61% of fund managers expecting further declines in the dollar’s value over the next year.

Central banks are now at a crossroads: whether to devalue their currencies to boost competitiveness or maintain strength, risking economic downturn.