The U.S. dollar is expected to face ongoing challenges in 2026, following a significant decline this year, according to Abbas Owainati of Charles Stanley. The currency's weakening is attributed to concerns over fiscal sustainability, policy uncertainty, and shifting capital flows. Owainati anticipates further Federal Reserve rate cuts, which could exacerbate the dollar's decline. A weaker dollar may have positive implications for emerging market equities by easing debt burdens and enhancing returns. This trend reflects broader market dynamics as investors adjust to changing economic conditions and monetary policies.