The status of the US dollar as a worldwature was threatened by unstable policy and growth of trade barriers.
PR writes Financial Times with reference to the words of management management.
On Friday, the currency fell up to three years, in relation to the euro, continuing the autumn, which began last week after President Donald Trump announced sharp “mutual” duties for American trading partners.
These steps were anxious among investors who warned of a “tectonic shift” in the global economy, if the dollar can no longer rely as a shelter during periods of market volatility.
There are very good grounds to put an end to the exclusivity of the US dollar, ”said Bob Michelle, the chief investment director of JPMorgan Asset Management, under the control of 3.6 trillion dollars.
For decades, the relative stability of the US economy allowed the dollar to function as a global reserve currency, which is stored by central banks around the world.
This allowed the United States to borrow at low cost and finance the “double shortage” of the current payment balance and the state budget.
But the simultaneous sale of shares, bonds and dollar in recent days caused by the president’s aggressive trade policy indicates the loss of faith in American assets among international investors, financial managers say.
Trump’s chaotic customs policy undermines the US position as a safe harbor, ”said Bert Flossbach, co -founder and chief investment director of Flossbach Von Storch, the largest independent asset in Germany.
Of course, there is a possibility that increased political uncertainty in the United States can lead to changes in the use of the dollar in the global economy, ”said Brad Setter, researcher of the Council of International Relations.
Edward Fishman, the author of the book on the economic points of the economic war in the United States, said that in addition to Trump’s customs, the threat of the President of the Supreme Supervision and Independence of the Fed can also damage dollar attractiveness.
He predicted that over time this could lead to the transition to a “multipolar” system in which the currency, including the euro, will play a large role.
The fall of the dollar is especially unusual, since global financial stress usually strengthens the currency, since investors are in a hurry in dollar assets, such as US Treasury bonds that are perceived as shelter.
Economists also note that the currency of any country that is included in import duties should be strengthened.
Mike Riddell, management of a securities portfolio with fixed income in Fidelity International, said that the recent sharp increase in the profitability of long -term state bonds combined with a weaker US dollar looks like “good old capital”.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.