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US dollar losing its lustre

'The dollar and US Treasuries are typically safe haven assets. But no one really wants to own the dollar right now'

Afp September 02, 2017 Less than a minute read

The minister claims that Pakistan’s move to issue Eurobonds worth $500 million after a gap of seven years has received a good response from bond managers. PHOTO: FILE

NEW YORK: In times of uncertainty or crisis, investors typically take refuge in safe options like the Swiss franc, gold or the US dollar, but under President Donald Trump the greenback has lost its lustre, especially to the euro. After this week’s North Korean missile launch over Japan raised fears it could trigger a major conflict, the single European currency rose above the symbolic threshold of $1.2 for the first time since January 2015. “The dollar and US Treasuries are typically safe haven assets. But no one really wants to own the dollar right now,” said Brad Bechtel, head of foreign exchange trading at Jefferies. US monetary policy also plays a role in the dollar’s relative value as do comments - or the absence thereof - from central bankers.

Published in The Express Tribune, September 2^nd, 2017.

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