<div id="readability-page-1"><p>The U.S. Dollar Index (DXY), which tracks the dollar against a basket of other currencies, has fallen by nearly 10% this year, driven by U.S. debt concerns, lower interest rates, and tariff uncertainty. The weak performance could mark a notable pivot for the world's leading currency.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge-fund level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>&#34;The US dollar's weakness in 2025 likely signals a turning point in its long cycle of strength—though not the end of its global dominance,&#34; said Morningstar Investment Management Head of Fixed Income and Currency Research Hong Cheng. </p> <h2><strong>Is the U.S. Dollar in Danger?</strong></h2> <p>Cheng doesn't expect a &#34;full-blown structural collapse&#34; of the dollar, although she does believe that it is overvalued relative to other currencies. She added that investors should consider diversifying to non-U.S. markets because their currencies have greater appreciation potential when compared to the dollar.</p> <p>Furthermore, Cheng highlighted gold (XAUUSD) as a hedge to a weakening dollar. However, gold's weakness lies in its lack of cash flow and volatility, which makes it difficult to value.</p> <p><strong>Stay ahead of macro events with our up-to-the-minute </strong><strong>Economic Calendar</strong><strong> — filter by impact, country, and more.</strong></p></div>

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<p>Morningstar's Hong Cheng views the U.S. Dollar's 10% decline in 2025 as a potential turning point, though not the end of its global dominance. She suggests diversifying investments to non-U.S. markets and considers gold as a hedge against the dollar's weakness, despite its valuation challenges.</p>

U.S. Dollar's Weakness is a 'Turning Point,' Says Morningstar