Foreign Funds Are Pouring In: The US Dollar Rate About to Boom
The US dollar has been in heavy jeopardy, battling a rate crisis for a long time. The asset has plunged 10% in the first half of 2025, crippled heavily by Trump’s stringent tariffs that continue to weigh on the US economy. With the shaky US dollar rate, value, and dynamics, a new ray of hope has emerged out of the lot in the form of foreign investment funds. The metric has risen sharply as of late, indicative of rising foreign interest in the US once again. Will this development help the US economy help stabilize the falling US dollar rates and valuation? Let’s find out.
Also Read: 3 Shocking Examples How BRICS Bypassed the US Dollar
The US Is Attracting Heavy Foreign Investments: What This Means
The US economy has lately been battling a heavy crisis. The asset has decreased gradually, with rising Trump tariffs beating it heavily and noteworthy de-dollarization drives continuing to pester the dollar. Moreover, leading currencies, such as the Swiss franc and yen, are now outpacing the US dollar. These narratives may ultimately note a steady change in the future as the US has now started to welcome a spree of rich foreign investments, enriching its economy with a renewed fervor.
Per the recent statistics shared by the Kobeissi Letter, US net capital inflows have reached $1.76 trillion over the last 12 months. This development shows how the US economy is still resilient to external market changes and is standing firm, adopting a combative stance. Moreover, the aforementioned metric tells the amount of money entering the US through the sale of assets, which roughly means that the US is still a prominent investment market for global investors, with the weak US dollar rate making it a lucrative purchase.
“Foreign investment into the US is skyrocketing. US net capital inflows reached a record +$1.76 trillion over the 12 months ending in May. This metric shows how much outside money is entering US financial markets to buy assets. Net capital inflows have DOUBLED over the last several months and surpassed the previous peak from a few years ago. After a bumpy start to the year, foreign investment is piling back into the US market.”
Foreign investment into the US is skyrocketing:
— The Kobeissi Letter (@KobeissiLetter) August 1, 2025
US net capital inflows reached a record +$1.76 trillion over the 12 months ending in May.
This metric shows how much outside money is entering US financial markets to buy assets.
Net capital inflows have DOUBLED over the last… pic.twitter.com/h2gIi1zSmb
USD to Continue to Weaken: Goldman Sachs
Per a recent note issued by banking giant Goldman Sachs, the US dollar rate may continue to stumble as it may weaken against major currencies globally.
“Investors are increasingly focused on the outlook for US deficits. And those concerns are beginning to drive up yields on longer-maturity Treasuries. Goldman Sachs Research forecasts the dollar to weaken against other major currencies.”
In addition to this, Goldman Sachs stated how Bitcoin and gold continue to attract mainstream investor interest.
“Many investors have become more bearish on the US dollar amid fiscal concerns, and Goldman Sachs Research expects further depreciation in the currency. But Varadhan points out that the US isn’t the only developed market with an unusually large budget deficit. The US budget deficit this year is estimated to be about 6% of GDP”, as quoted in the Goldman Sachs Note.
Also Read: Next US Dollar Low: Key Week With Fed Decision and Tariff Risk
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