Global de-dollarisation trend intact as safe-haven rally in US dollar peters out
Though divided on the Fed’s next moves, economists say a weaker greenback should give Asian central banks room to ease
Add BT as a preferred source
[SINGAPORE] The US dollar’s recent bout of strength – a short-lived one – amid rising Israel-Iran tension signals that the greenback’s safe-haven status is intact. But its swift slide on news of a ceasefire on Tuesday (Jun 24) also suggests that the de-dollarisation narrative is still in play, said analysts.
Deutsche Bank’s global head of emerging markets and Asia-Pacific research, Sameer Goel, told The Business Times: “The price action last week, including in Asian currencies, in response to geopolitical risk in the Middle East supports the more traditional safe-haven appeal of the dollar...
“But I don’t think that reverses the de-risking trend in global markets to re-calibrate their unhedged exposure to the dollar.”
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Is it time to scrap COE categories for cars?
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
As more Asean states turn to Russia for fuel, will Moscow boost its influence in the region?
