Advisor Suggested Cutting US Dollar Exposure
Investors in Asia are being advised to reduce their US dollar holdings as structural inflation trends evolve.
Updated on Sept. 22, 2026 in Investing
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Kelvin Tay, chief investment officer for Asia at Pictet Wealth Management, has advised ultra high net worth clients to gradually reduce their exposure to the US dollar. The guidance reflects a shift in portfolio construction strategy amid changing global economic conditions.
Why it matters
Higher inflation and interest rates are reshaping how portfolios are built, prompting a move away from reliance on the US dollar. Inflation is now projected to remain structurally elevated at levels near 3 percent, necessitating adjustments to long-term asset allocation.
Inflation is expected to reach 3% in the coming period, according to projections for the current economic cycle. This shift impacts the holdings of ultra high net worth investors in Asia currently managing their US dollar exposure.
The players
Kelvin Tay
Chief investment officer for Asia at Pictet Wealth Management who provides investment strategy guidance to ultra high net worth clients.
Pictet Wealth Management
A global financial institution providing wealth management services and investment advisory to high net worth individuals.
The details
The strategy centers on adapting to an economic environment where inflation and interest rates are expected to remain structurally higher than in the past. By reducing US dollar exposure, investors aim to mitigate risks associated with these persistent levels of inflation. The process involves a gradual adjustment of portfolio holdings to better align with these emerging macroeconomic realities.
Timeline
September 22, 2026: Official publication of the investment advice.
Money Landscape
This guidance follows a pattern of portfolio realignment in response to the transition toward structurally higher global inflation. It signals a shift away from the low-interest-rate environment that characterized the previous decade.
Investors should review their current portfolio diversification to determine how exposure to foreign currencies might be affected by projected 3% inflation. Consult with a qualified financial or tax professional to assess how these macroeconomic shifts apply to your specific financial goals.
The takeaway
The core insight is that sustained higher inflation may require re-evaluating the role of the US dollar in an international portfolio. Monitor upcoming central bank policy signals and inflation reports to determine if your current asset allocation remains appropriate for your long-term plan.
Further reading
For more on managing international portfolio holdings, visit our guide on Investing.
Source note: This article includes information reported by Asian Private Banker.
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