The US dollar has been labeled as "unattractive" by UBS, who advises investors to sell during periods of dollar strength to mitigate risk. UBS points to several factors contributing to this view, including anticipated rate cuts by the Federal Reserve in response to declining inflation, which could further weaken the dollar.

Concerns about US fiscal policy are also expected to put downward pressure on the currency. In the event of a second Trump administration, potential tariffs could have a greater negative impact on US consumers and GDP compared to other nations, raising concerns about the federal deficit, especially with possible tax cuts on the horizon. Regardless of the outcome of the upcoming presidential election, the growing federal deficit is likely to face increased scrutiny.

UBS suggests that other currencies may gain support as these dynamics unfold, indicating a challenging environment for the US dollar in the near future.