EddieJayonCrypto
5 Apr 25
Banking giants JPMorgan Chase and Deutsche Bank are examining the dollar's global dominance. A Reuters survey of 69 foreign exchange strategists reveals that 33% have doubts about the dollar's status as a safe-haven asset during market turbulence. Specifically, 40% of respondents see signs of the do...
A recent Reuters survey of 69 foreign exchange strategists uncovered that 33% have reservations about the dollar's safe-haven status during market turbulence. This skepticism arises from a weakening US outlook and global challenges to institutional norms, with 40% of respondents noting signs of the dollar's safe-haven position eroding, potentially leading to further decline over time.
Deutsche Bank's George Saravelos points to the risks posed by the weakening US outlook and global challenges to institutional norms, indicating potential deterrents for foreign investors to allocate to dollars. Meanwhile, JPMorgan's Arindam Sandilya highlights the gradual shift from USD to gold holdings by central banks, underscoring a sustained decline in the dollar's allocation within central bank reserve holdings.
Gold recently reached a historic high of $3,167, prompting Wall Street firms like Bank of America and Citi to forecast long-term targets of $3,500. The heightened interest in gold's potential is indicative of a broader reassessment of traditional safe-haven assets amid evolving global economic dynamics and uncertainties.