Former head of the US Federal Reserve, Janet Yellen, who is running for the post of the country’s finance minister, could lead the dollar to a long-term fall.
Financial experts told Bloomberg about this.
Investors expect that the dollar will weaken due to budgetary injections, which Democrats plan to resort to to stimulate the national economy.
“Yellen’s position indicates that the US government is unlikely to prevent the dollar from falling,” said a specialist from National Australia Bank Ltd. Rodrigo Catherine.
Expert from Australia & New Zealand Banking Group Ltd. Hong Guo believes that the new United States government is comfortable with a weakening dollar. This is evidenced by the news that Janet Yellen intends to adhere to the market exchange rate of the national currency.
Experts from Goldman Sachs also believe that low nominal and real interest rates on loans, a high dollar appreciation, as well as a rapid global economic recovery in 2021 will put pressure on the US currency.
Earlier, the media reported on the EU’s plans to fight the dominance of the dollar in world markets. In particular, the European Commission is preparing a plan that they intend to approve in the coming days. Brussels was outraged by Washington’s unilateral sanctions and the vulnerability of the European financial system due to the risks associated with the US currency.