The weak dollar: Why it won’t be replaced as global reserve currency

  • 📰 eNCA
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 51%

South Africa Headlines News

South Africa Latest News,South Africa Headlines

For international investors in general, currency risk – above all the weakening of the US dollar – has become the most important financial risk of the year.

Finally, the US dollar has been penalised by the presidential election. Financial markets like stability, so the prospects of a change in the presidency make the recovery more uncertain. Historically, volatility in the stock market rises in the months leading up to an election , and this weakens investors’ demand for dollars. Investors also fear that Donald Trump is not coping with the COVID-19 crisis, especially on the health front.

On the other hand, all countries with their currencies pegged to the dollar have become more competitive. This has offset the damage from both the pandemic and declining oil prices.On the whole, we shouldn’t worry too much about the weaker dollar. It is still relatively strong, having appreciated 17% against the euro between 2010 and 2020 even allowing for its current weakness.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 49. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why scientists are 'worried' about Covid-19 vaccines from Russia, ChinaHigh-profile Covid-19 vaccines developed in Russia and China share a potential shortcoming: They are based on a common cold virus that many people have been exposed to, potentially limiting their effectiveness, some experts say.
Source: SundayTimesZA - 🏆 47. / 51 Read more »

WATCH: Why RCL Foods’ loss widenedRCL Foods CEO Miles Dally talks to Business Day TV about the difficult trading conditions the group faces
Source: BDliveSA - 🏆 12. / 63 Read more »

Why did shooter not first assess the situation?: cleric on Nateniel JuliesThe fatal shooting of a disabled teenager in Eldorado Park, south of Johannesburg, last week is unacceptable, said a cleric who was outside court on Monday ahead of the first appearance of two police officers.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

WATCH | Business Day: Why every story is your businessBusiness rescue could save SAA. But will it be allowed to do its job? There are true sides to every story. We make all of them your business. EveryStoryIsYourBusiness
Source: BDliveSA - 🏆 12. / 63 Read more »

Why did shooter not first assess the situation?: cleric on Nathaniel JuliesThe fatal shooting of a disabled teenager in Eldorado Park, south of Johannesburg, last week is unacceptable, said a cleric who was outside court on Monday ahead of the first appearance of two police officers.
Source: TimesLIVE - 🏆 28. / 59 Read more »

WATCH: After causing major early morning traffic jams, Durban bus drivers march to city hall. Here’s whyAt the crack of dawn on Monday, hundreds of passengers were stranded and had to seek alternative transport when bus drivers abandoned their vehicles along some of the major routes N2 and N3 heading into and out of Durban, KwaMashu, Newlands and Umlazi
Source: IOL - 🏆 46. / 51 Read more »