Bloomberg Surveillance · Friday, July 17, 2026
Simona Macovei, Chief Economist at State Street Investment Management, posits that the US dollar is entering a multi-year depreciation cycle. This perspective, she notes, is often counterintuitive given the dollar's traditional role as a safe haven during geopolitical risk. Macovei suggests that while shifts can occur, the dollar's depreciation will likely be a slow process.
“You know, that's been the story for so long. We've been talking about this, We've been afraid about this happening, and so far it's been a very slow moving kind of anyone here, right, and I think it will continue to be that incrementally, yes, because obviously you look at Japanese yields being at the levels not seen in a very very long time. There is an attraction there. But you know, these things don't happen overnight.”
“Well, no, that's the irony of it, right, Sometimes you're the trigger of the geopolitical risk event, and yet you are the safe asset. So that's a reminder though that these things, there is value in what the US dollar offers, so incrementally it can shift in a direction, but it's going to be a slow process.”