Europe's largest asset management firm, Amundi, has announced that it is decreasing its exposure to U.S. dollar-denominated assets and shifting its focus toward European and emerging markets.
Valérie Baudson, who oversees 2.4 trillion euros in assets, stated that Amundi will advise its clients to reduce their holdings of dollar assets over the coming year. She cautioned that if U.S. economic policies remain unchanged, "we will witness a continued depreciation of the U.S. dollar."
"Over the past 12 to 15 months, Amundi has been actively diversifying its portfolio and strongly recommending that clients adopt a highly dispersed investment approach... In the year ahead, we will continue to advise clients to diversify their positions," Baudson remarked in a Tuesday interview.
Amundi is the latest major investor to signal a reduction or hedging of U.S. asset exposure, reflecting market unease over the unpredictable economic policies of U.S. President Donald Trump. Since Trump initiated tariff shocks last April, the dollar has weakened considerably. This year, his threats toward European allies over Greenland and growing concerns about Federal Reserve independence have further accelerated the dollar's decline.
Baudson noted that initially, international investors hedged against dollar depreciation by purchasing gold, which largely explains the remarkable surge in gold prices during the same period.
She added, "What we observed next was a market shift toward diversification away from dollar assets, as global investments in U.S. dollar assets had previously been overweight."
This movement has driven capital into assets across Europe and emerging markets, spanning both fixed income and equities.
Last year, largely propelled by dollar weakness, emerging market equities delivered their strongest performance since 2017, with gains accelerating further in early 2026.
Amundi also mentioned that its investments have become more diversified across geographic regions, industries, and company sizes.
Baudson's comments come as a wave of dollar selling pushed the currency to a four-year low by the end of January, with the dollar index falling more than 10% against a basket of major currencies over a 12-month period. During the same timeframe, gold prices nearly doubled, soaring to a record high near $5,600 per ounce in late January.
However, following Trump's nomination of Kevin Warsh as Fed chair, the dollar, gold, and other assets experienced sharp fluctuations amid a period of intense volatility.
Baudson stated, "If the economic trajectory does not change... we may see gold prices continue to rise."
The interview coincided with Amundi reporting a record-high assets under management figure as of the end of December, fueled by a full-year record net inflow of 88 billion euros. The company also announced a 500 million euro share buyback program.
Amundi's call to reduce U.S. asset exposure has been echoed by other major asset management firms. Among them is U.S. bond giant Pimco, which stated last month that Trump's "unpredictable" policies are pushing markets into a phase of "diversification away from U.S. assets" in the coming years.
Natasha Brook-Walters, head of Wellington Management's $70 billion multi-asset strategies team, said she is "expressing concern about the dollar" by buying other currencies such as the euro and Australian dollar. She added, "We are optimistic about emerging markets and increased long positions at the start of the year."
Becky Qin, a portfolio manager at Fidelity International, revealed that she has "significantly reduced" dollar exposure within her $7 billion portfolio, adding that she "still expects the dollar to weaken."
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