The U.S. currency’s demand as an ’emergency dollar’ could be waning, Deutsche Bank says
A Chinese bank employee counts 100-yuan notes and U.S. dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019.
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The currency markets are currently facing “multiple cross-currents” amid fears over a potential second wave of coronavirus cases in the world, said Deutsche Bank’s Sameer Goel, who is chief Asia macro strategist.
A “big question” for investors right now over the U.S. dollar is whether it should be trading at a safe-haven risk premium as concerns rise over a potential second wave of virus infections, Goel told CNBC’s “Street Signs” on Monday.
He said that in a potential resurgence of cases, the U.S. dollar could weaken against most of its peers in developed markets, and to an extent, possibly China too.