The US is Winning Currency War to Weaken Dollar
$DXY, $USD, $EUR, $GBP, $CHF, $JPY, $CNY
The US is winning a “cold currency war” as it seeks to weaken the USD
The Buck’s nearly 12% dive since the start of Y 2017 is being fueled by fiscal and monetary policies as well as rhetoric intended to debase the US currency, the Pimco’s (Pacific Investment Management Co.) global economic adviser wrote in a blog post.
Central banks from Europe to Japan have refrained from pushing back too hard on fears over increased protectionism from The Trump Administration.
“Cold wars are not fought in open battle (for example, with currency intervention), but with words and covert actions,” he wrote. “These actions are sending an implicit but very clear signal to markets: A weaker dollar is the goal. Markets have understood the signal.”
Thursday the US Dollar (.DXY) Index -0.5% to 88.71
$EURUSD +0.62% at 1.2489 $GBPUSD +0.47% at 1.425 $USDCHF -0.32% at 0.9281 $USDJPY +0.25% at 109.47 $USDCNY +0.20% at 6.297
“The weak USD dynamic could stay in place for some time,” he wrote. “The incentives for the protagonists in the cold currency war haven’t changed.”