Leading multinational financial services firm Wells Fargo wrote in a recent article to stakeholders that the best investment option today is to accumulate dips in the US dollar. The DXY index fell to a low of 97 on Monday, falling briefly to 96.80 last week. Currently, USD has been at over 10% since the start of the year, falling to its lowest level in three years. Local currencies have generated more profits in the currency market this quarter than in greenback.
The downward trend is steadily swirling with little or no upward trajectory on the horizon. Major currencies like the euro and crona and top Asian currencies surpassed the US dollar in 2025. Investors don’t see greenback as a safe haven now suffered from tariffs and growing debt. But Wells Fargo believes the dip is temporary and the US dollar will regain its advantage by the third quarter of 2026.
Wells Fargo: accumulate US dollar dip and wait until 2026
The USD short-term forecast remains behind, but the long-term forecast is positive. Wells Fargo writes that while the euro will skyrocket, the US dollar will soak for the rest of 2025. The investment bank said the euro would remain stable between 1.17 and 1.20 and could not gain any further momentum.
Wells Fargo writes that there is a possibility of US dollars in the third quarter of 2026, as tax cuts will help support the US economy. The bank wrote in its latest article that it does not believe the Fed will cut pension rates next year. In this context, investment banks hope that the US dollar will rebound in value in 2026 and regain its glory. Therefore, buying a greenback at the lowest point is recommended as it may not be available for a long time.