US dollar debasement 'isn't really happening,' strategist says

February 14, 2026 - 00:31

Recent fluctuations in the U.S. dollar have sparked discussions about the currency's long-term strength. However, some financial strategists contend that this perceived weakness is not a sign of fundamental debasement but rather a reflection of broader global portfolio diversification.

According to Jane Foley, Head of FX Strategy at Rabobank, and Amanda Agati, Chief Investment Officer at PNC Asset Management Group, foreign investor demand for U.S. assets remains robust. They suggest that moves away from the dollar are part of a natural rebalancing act as investors seek opportunities in other markets, not a wholesale flight from dollar-denominated holdings.

The conversation also turned to the surge in gold prices, often viewed as a barometer of concern about fiat currencies. The strategists interpreted this trend as a signal of shifting global capital flows in a complex macroeconomic environment, rather than a direct verdict on the dollar's demise. Their analysis points to a nuanced financial landscape where the dollar maintains its pivotal role even as investors cautiously broaden their horizons.