JPMorgan Strategists Says Market Fails to Reflect Threats to Dollar Dominance
- US political fragmentation puts greenback at risk: JPMorgan
- ‘Cold War 2.0’ is among scenarios that could hurt dollar
The JPMorgan Chase & Co. headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Investors betting on the dollar’s continued dominance in the years to come are overlooking the risks of rising political instability in the US and escalating tensions with China.
That’s the thinking of JPMorgan strategists who argue that the markets aren’t fully reflecting the risk of a “rapid and deep” decline in the greenback’s status as the currency of choice for global reserves and trade — a process known as dedollarization. It’s also left the dollar expensive on a historical basis.