PIMCO, led by Daniel Ivascyn, has become more cautious towards the U.S. dollar, indicating a slight underweight position in the currency across its portfolios. The dollar index has declined around 4% this year due to concerns over U.S. tariff uncertainty potentially leading to an economic downturn. Ivascyn expressed this caution at a London conference, noting that although the dollar could still appreciate in case of a global growth shock, persistent deficits and trade tensions might diminish the dollar's dominance in the long term.