Deutsche Bank Sees Risk of US Dollar Losing Safe-Haven Status
Deutsche Bank’s concerns follow a slump on the dollar on Tuesday that has caught out investors betting on further strength.
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The US dollar may lose its traditional safe-haven status as global markets adjust to a new geopolitical order, according to Deutsche Bank AG.
“We do not write this lightly. But the speed and scale of global shifts is so rapid that this needs to be acknowledged as a possibility,” said George Saravelos, the bank’s global head of FX strategy, in a note to clients. “It is hard to over-estimate the scale of change taking place in global economic and geopolitical relations in a matter of days.”