New Delhi, June 28 -- The recent fall in the US dollar is no longer being driven only by changing expectations around interest rates.

According to a report by Union Bank of India, the dollar's decline is now being supported by a more fundamental shift as global capital is moving away from US assets.

The report stated, "The dollar's weakness is no longer being driven solely by shifting rate expectations; it is now being reinforced by a decisive reallocation of global capital".

It also suggested that unless the US Federal Reserve re-establishes a clear lead in policy or US economic growth picks up speed, the report highlighted that this preference for non-US fixed income assets could continue to weigh on the dollar index (DXY) in the nea...