, ? || Dollar Weakening, How Is Future Scenario? ||
The weakening U.S. dollar is set to slide even further, but its importance as the worlds reserve currency is unlikely to be diminished, according to analysts.
The greenback had benefited as investors flew to safety amid the pandemic, which drove it to a three-and-a-half year high in March.
But now strategists say the countrys economic recovery is in question, given its weak coronavirus response. The dollar had also reacted to the countrys surging deficit and the prospect of U.S. interest rates remaining lower for longer.
The dollar index fell to a 27-month low last week at 92.477, a steep decline from its 102 level in March. Since then, it has been fluctuating, swinging between the 92 and 93 levels in the past week. It was last at 93.150 on Monday.
U.S. economic outperformance relative to the euro area and Japan (no longer) seems guaranteed, at least over the next few years, given the faltering virus response. Furthermore, the European Unions new EUR 750 billion recovery fund is giving investors more confidence in the euro as an alternative, JPMorgan Asset Managements Patrik Schowitz said in a recent note.
https://www.cnbc.com/2020/08/24/us-dollar-still-unrivaled-as-global-reserve-currency-versus-yuan-euro.html
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, ? || Dollar Weakening, How Is Future Scenario? || The weakening U.S. dollar is set to slide even further, but its importance as the worlds reserve currency is unlikely to be diminished, according to analysts. The greenback had benefited as investors flew to safety amid the pandemic, which drove it to a three-and-a-half year high in March. But now strategists say the countrys economic recovery is in question, given its weak coronavirus response. The dollar had also reacted to the countrys surging deficit and the prospect of U.S. interest rates remaining lower for longer. The dollar index fell to a 27-month low last week at 92.477, a steep decline from its 102 level in March. Since then, it has been fluctuating, swinging between the 92 and 93 levels in the past week. It was last at 93.150 on Monday. U.S. economic outperformance relative to the euro area and Japan (no longer) seems guaranteed, at least over the next few years, given the faltering virus response. Furthermore, the European Unions new EUR 750 billion recovery fund is giving investors more confidence in the euro as an alternative, JPMorgan Asset Managements Patrik Schowitz said in a recent note. https://www.cnbc.com/2020/08/24/us-dollar-still-unrivaled-as-global-reserve-currency-versus-yuan-euro.html