Joey Chew, head of Asia FX research at HSBC, forecasts the US dollar will "remain soft" as market participants brace for continued volatility. Her analysis comes as currency traders seek clarity amid shifting global economic conditions and Federal Reserve policy signals.

The political and structural factors Chew cites include persistent inflation concerns, fiscal policy debates in Washington, and the growing divergence between US and Asian monetary policies. These elements collectively pressure the dollar's value against major currencies, creating challenges for international businesses and investors.

Regarding the Japanese yen, Chew's outlook suggests the currency faces its own set of pressures despite occasional strength. The Bank of Japan's accommodative stance contrasts with global tightening cycles, positioning the yen as a focal point for currency market watchers in the coming quarters.

Market implications extend beyond currency valuations, affecting everything from export competitiveness to overseas earnings for multinational corporations. HSBC's currency research provides valuable guidance for portfolio managers navigating these complex market conditions where traditional dollar dominance appears increasingly challenged.