U.S. dollar no longer the dominant 'haven' currency, analysts say

Section:

By Adam Samson
Financial Times, London
Tuesday, September 26, 2017

Has the king of currencies been dethroned?

The dollar is no longer the catch-all haven currency of the past.

Thank "idiosyncratic risks," say analysts at Bank of America Merrill Lynch.

Adarsh Sinha, a strategist at the U.S. investment bank, crunched the numbers and found that the greenback hasn't really been "safe" since 2014. It has tended to depreciate against most of the major currencies during nervous episodes, he notes.

I>... Dispatch continues below ...



ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata



"Perhaps unsurprisingly, this coincided with the end of Fed [quantitative easing] and the emergence of more aggressive easing by the European Central Bank and Bank of Japan," said Mr Sinha.

An analysis from SEB yields a similar result, showing that the buck tends to correlate positively with the S&P 500, the stock barometer that provides something of a gauge for risk appetite, except during times of exceptional financial stress. ...

... For the remainder of the report:

https://www.ft.com/content/02793986-463c-3106-89ea-9e903fad2a5d

* * *

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 25-28, 2017
Hilton New Orleans Riverside Hotel, New Orleans, Louisiana
http://neworleansconference.com/wp-content/uploads/2017/07/NOIC2017_powe...

Mines and Money London
Business Design Centre
London, England, United Kingdom
Monday-Thursday, November 27-30, 2017
http://london.minesandmoney.com/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16