Asset Risk Consultants (ARC) latest investment manager sentiment survey of CIOs reveals that the US dollar is the most negatively rated asset class among wealth managers.
Its latest market sentiment survey, a quarterly poll of 107 investment management CIOs examining the 12-month outlook for the major asset classes and sectors, reveals that negative sentiment towards the US dollar has fallen significantly over the past year.
During the second quarter of 2025, sentiment towards the US dollar recorded a net change of minus 78 compared to Q2 2024 amid expectations that the Fed will cut ahead of other central banks and mounting concerns over US deficits and credit downgrades.
While the dollar is now the most negatively rated asset in the survey, alternatives led the way with the strongest positive readings, with optimism concentrated on gold, commodities and hedge fund strategies. Equities and cash drew more moderate support from CIOs, while bonds remain evenly balanced, reflecting uncertainty around the path of interest rates.
Dan Hurdley, Managing Director at ARC Research, says: “We think that the recent shift in sentiment against the US dollar reflects more than just momentum. While US policymakers may welcome a weaker currency to boost trade competitiveness, investors are looking ahead. Concerns are growing that deliberate depreciation could fuel inflation and raise interest burdens, sparking fears of a downward spiral. The dollar’s reserve currency status, once unquestioned, is now under increasing scrutiny. After years of outperformance, many managers are trimming USD exposure as part of broader rebalancing — and reassessing hedging strategies given the impact of currency moves on global portfolios.”
