News 
Market Data 
Discover
Replies to post #2064 on United States Steel Corporation (X)
How the pandemic could undermine King Dollar
When the novel coronavirus sent investors running for the exits in March, there was a mad dash to snap up US dollars, the world's ultimate safe haven asset.
But as the United States struggles with fresh Covid-19 outbreaks weighing on the economic recovery, the dollar has stumbled.
Now, some on Wall Street warn it could fall further, due in part to President Donald Trump's handling of the crisis and isolationist policies.
See here: "We expect the US dollar to follow a path of reduced dominance and weaken over the long term," Nomura said this week in a report to clients.
The dollar — an important symbol of America's global standing — remains the primary currency of choice for investors, who use it to trade a wide array of assets. It's also the world's top reserve currency, held in large quantities by governments, central banks and other major financial institutions. Dollar bulls and skeptics alike note that at present, there's no real alternative.
Yet investors are becoming less sanguine about the dollar's outlook. Growing debt loads and Trump's commitment to "America First" policies have added to risks. A diminished role for the United States on the world stage could encourage allies to step up holdings of other top currencies.
Another headwind: Asset managers like BlackRock are encouraging clients to consider investment opportunities in Europe, where countries appear to have a better handle on the health and economic challenges posed by the virus. That could encourage traders to sell dollars and buy euros.
These trends could hurt the dollar's value in the coming months — though experts caution that any substantial change in the global currency regime would take decades.
