The US dollar's demise has been exaggerated, report finds

Published On Sep 5, 2024, 2:00 AM

A new report from JPMorgan states that the U.S. dollar's dominance in global finance is likely to continue, contradicting fears of its impending decline due to the rise of alternatives like the Chinese yuan. Despite diversification away from the dollar by some countries, JPMorgan emphasizes that the dollar remains well-entrenched, underscored by stable confidence from the private sector and the deep, liquid capital markets backing it. The report suggests that significant erosion of the dollar's dominant status would likely take decades, notwithstanding the ongoing shifts in reserve allocations and emerging currencies.

Read full article

Stock Forecasts

UUPView UUP chart on TradingView

Positive

Given the reaffirmation of the U.S. dollar's dominant status, along with the structural support provided by U.S. fiscal strength and legal frameworks, investors might consider a continued strong performance of the dollar and consequently related financial instruments.

Related News

Stocks Rally Gathers Momentum as Fed Cut Sinks In: Markets Wrap

Sep 19, 2024, 2:00 AM

(Bloomberg) -- Share futures rallied alongside Asian equities on expectations the Federal Reserve’s half-percentage-point interest-rate cut will guide the world’s largest economy toward a so-called soft landing.Most Read from BloombergCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughAOC Proposes $30 Billion Social Housing AuthorityNew York City’s Transit System Plans $65.4 Billion of Upgrades for Grand Central, SubwaysTo Build a Happier City, Design for DensityPipe Fire Near H

SPY
UUP
GLD

The US dollar's demise has been exaggerated, report finds

Sep 5, 2024, 2:00 AM

A new analysis by JPMorgan found that despite concern about the erosion of the U.S. dollar's international status, the dollar's dominance is likely to continue in the decades ahead.

UUP