Dollar bleeding .. Did the American currency lose its position as a safe haven?
The dollar fell to the lowest level in about 7 weeks, today, Tuesday, after the US labor market data showed that the situation was worse than it was imagined in the beginning, and this in turn will encourage the Federal Reserve (the central bank) to reduce interest rates, which means more decline in the green currency." target ="_Blank"> The dollar index to its lowest level at 97.323 in Asian dealings, which represents the weakest level since last July 24. As for the euro, it increased by 0.1%, to trade at $ 1.1778, which is its strongest level in the same period. Alex Hill, the company’s managing director, is accelerated by Alex Hill "Electo Financial" For "Reuters": "The employment numbers in the United States deteriorate at an accelerated pace, and this is translated into a gradual weakness of the dollar, but we expect an acceleration in this situation"
It is also expected that the reduction in interest rates, which has become in the verdict, during the US Central Bank meeting on the 17th of September, will also lead to a more declining in the value of the dollar, as investors will turn into other assets that generate a better return.
Aman or illusion network?" target ="_Blank"> Hedge naturally during economic and political shocks. However, the sharp decline that started last April, questions about his position as a safe haven, and whether this position is really justified. "Reuters"The American administration seeks to reduce "Exaggeration in evaluation" The dollar, to support the re -manufacturing agenda pursued by President Donald Trump, while pressing the Federal Reserve to reduce interest rates. "If foreign investors no longer believe in"safety net" The dollar, this is bad news for a topic "American exceptional" Which has already been damaged, especially since the additional hedging costs will reduce the expected returns in the markets." Trump’s interventions harm the currency for months, President Donald Trump launched a strong campaign against the Central Bank President, Jerome Powell , asking him to reduce interest rates, threatening to dismiss him if necessary. "Touch Capital Markets" On this situation, he said that "The markets will be disturbed by any early move to appoint a successor to the height, especially if the decision appears to be political motives."
added: "These actions raise questions about the erosion of the independence of the Federal Reserve Bank, and its credibility may be weakened"Warning that that "It will push the markets to reassess interest rate expectations and reassess the dollar mode."
The end of the American exceptional? "American exceptional"Or the idea that the United States is inherently different from other countries, a major topic in the decline in the dollar in recent months. "GB Morgan Chase": "The risk of an additional negative trauma is high, and we expect the high rates of American customs duties. As a result of these developments, the main scenario includes the end of the American exceptional phase."
Analysts warned that customs duties may slow economic growth and raise inflation, which puts 40% possibilities for economic recession."
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