Jefferies Recommends Asian Currencies as US Dollar Weakens

According to the Global investment firm Jefferies, Asian currencies are preferable for trading over the weakening US dollars. The firm has advised investors to prefer Asian currencies over the weakling dollar as its index hit a low of 97.8 in 2025. This drastic change in the currency power is noticed due to the fluctuating economy and policy risks of the US. Hence, the firm has advocated for investors to opt for Asian currencies for secured long-term gains. The firm has also suggested a five-year call option on a revaluation of the Hong Kong dollar against the US dollar.

The firm also highlighted that extreme US policy measures amounting to an implicit default may not materialize, even if their consideration is negative for the dollar. The report stated, “Clearly, anything is possible in the Trump administration,” calling any such moves bearish for the greenback.

Key Highlights-

• Jefferies advises investors to shift from US dollar to Asian currencies
• US dollar index hits 2025 low amid policy and economic concerns
• Americas net investment income turns negative for the first time since 1960

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Adding to concerns, Jefferies flagged a reversal in America’s net investment income, which has turned negative for the first time since data collection began in 1960. Revised figures showed net investment income fell from an annualized 1.43 percent of GDP in 2018 to a record negative 0.07 percent of GDP by Q3 2024, and remained negative at 0.05 percent through Q1 2025.

Jefferies sees this development as a significant shift that could further weaken the US dollar and strengthen the case for Asian currencies.