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Threat to Dollar’s Global Supremacy Revived by EU Stimulus Deal

  • Euro would gain popularity should break-up risks ease: Mizuho
  • Common currency is near strongest level since early 2019

The dollar is facing renewed questions about its status as the globe’s primary reserve currency.

The greenback accounts for more than 60% of global reserves and is the most widely used currency for international transactions. But it risks ceding ground to the euro after European Union leaders agreed on a 750 billion euro ($860 billion) stimulus package that enhances the appeal of the shared currency and euro-denominated assets, analysts from Credit Agricole and Mizuho International Plc said.