The resilience of the US economy in recent years was interpreted by many investors as a demonstration of American ‘exceptionalism’, says Rabobank’s currency analyst Jane Foley.
The global leadership of the dollar remains intact for now
“The increase in fears to a recession in the US that followed the Trump tariff ads on April 2 caused a rapid output of ‘exceptionalism’ operations, which exceeded the traditional attraction of the dollar as a safe refuge. While other currencies continue to erode the dominance of the dollar as a global reserve currency, the dollar will maintain with a clear advantage for many more years.”
“In line with this, we hope that the dollar’s safe refuge character can be restored in the coming months. The exact moment will probably depend on whether the recession risks in the US increase or disperse, since this will guide net flows inside and outside the dollar assets. As a result of the weakened perspective for the US economy, we maintain forecasts to 12 months of EUR/USD. USD/JPY 140.00. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
