Investors believe the greenback is falling as US interest rates reach a high and the Fed’s tightening begins to hurt the world’s largest economy.

AllianceBernstein and UBS Asset Management expect the yen, kiwi, and emerging-market currencies like the Brazilian real and Colombian peso to rise.

The dollar’s resiliency defied bears who predicted a multi-year collapse after 2022’s spike.

As inflation declines, there is a growing belief that they may be correct.

The Bloomberg Dollar Spot Index dropped 11% from its September peak to a 15-month low, and hedge funds became net sellers of the dollar for the first time since March.

Investors are betting on which currencies will benefit from the dollar’s collapse, with bulls viewing factors from worries of a US recession, shrinking rate differentials, and anticipation the Bank of Japan may adjust its ultra-loose policies in the coming months as yen bulls.