Amundi, Europe’s largest asset manager, is decreasing its allocation to US dollar assets amid the weakening of the greenback and increased volatility. The firm is directing clients towards greater diversification, particularly in European and emerging-market investments.
CEO Valerie Baudson indicated Amundi has actively promoted diversification away from the dollar for over a year, noting that continued trends in U.S. economic policy could further pressure the currency. She explained that investors initially responded to the dollar’s decline by buying gold, contributing to a significant rise in the precious metal’s price to an all-time high above $5,500 a troy ounce.
Recently, Amundi’s adjustments have mirrored actions by other major institutional investors, cautious over U.S. policy unpredictability. Since U.S. President Donald Trump’s tariff measures and subsequent statements, the dollar has experienced notable weakness, falling to a four-year low against a range of major currencies at the end of January and losing over 10% in value within a year.
Baudson highlighted that global investors, seeking to mitigate risk, have steered capital into European and emerging-market equities and fixed-income products.
Last year, stocks in emerging markets saw their strongest performance since 2017, largely attributed to the dollar’s decline, with momentum continuing into early 2026. Amundi itself has reported broader diversification by region, sector, and company size as part of its strategy.
Leading up to this, other asset managers, such as Pimco and Wellington Management, have signaled a shift away from U.S. assets, citing concerns about dollar weakness and policy volatility. Fund managers at Fidelity International have similarly reduced dollar exposure and remain wary of further losses in the currency.
