Raymond Sagayam, co-head of asset management at Swiss private bank Pictet, has issued a stark warning on the long-term trajectory of the US dollar, citing unsustainable levels of sovereign debt as the primary driver for future depreciation.
The bond expert argues that the currency’s structural weakness is becoming increasingly apparent as global investors reassess the risk-reward profile of dollar-denominated assets.
Sagayam’s outlook aligns with a broader shift in global reserve management strategies.
A growing number of central banks are actively planning to reduce their holdings of US dollars, marking a significant departure from traditional reserve composition norms.
This diversification trend suggests that institutional demand for the greenback may soften over the coming years, further pressuring the currency against major peers.
The US dollar has already shown signs of vulnerability in recent trading sessions.