Record Equity Allocations Sustain Dollar Exposure, BNY Reports

Geoff Yu, a strategist at BNY, notes that global equity allocations have climbed to an unprecedented share of investment portfolios. This trend is driven by the dominance of U.S. markets across both equity and fixed-income assets.

The heavy weighting toward U.S. assets supports continued demand for the dollar, as international investors need the greenback to purchase these securities. This dynamic helps sustain the dollar's value even as other factors might pressure it.