The global multi-asset strategist added: "The shrinking of its interest rate advantage makes the USD less appealing and pushes investors to consider deposits in other currencies. These cyclical factors won't turn around in a hurry and the US dollar likely has room to fall further."
"The prospect of the dollar retaining its perceived safe-haven status is another concern. We are weighing these as a contentious U.S. presidential election looms," BlackRock strategists wrote.Analysts argue, however, that recent fears that the dollar may lose its status as the world's reserve currency are overblown.
He said dollar bears have pointed to the greenback's declining share of global foreign exchange reserves over the past few years., the dollar share of total global reserves fell from 64.7% in the first quarter of 2017 to around 62% in the first quarter of 2020. In the last quarter of 2019, it saw a low of 60.9%.
"Perhaps more importantly, there is no obvious alternative to the dollar," Goltermann added. "The next two largest economies, the euro-zone and China, are both smaller than the US, and the euro and the renminbi have significant shortcomings as reserve currencies."
Completely overblown.
must be read
Exaggerated? You added 30% NEW dollars into the system.... It’s time for Bitcoin
Before we can finally call the Dollar to RIP, there must be a proven viable alternative currency. The EURO is no longer a threat for many years & most nations still don’t trust Mao. It’s that simple.
Always trust some analysts.
“The weakening dollar is set to slide even further” bitcoin $BTC