Explainer

Why Wall Street Is Obsessing Over Debasement Trades

A worker counts of US dollar banknotes at a currency exchange office.Source: Bloomberg

Political and fiscal uncertainty in major economies including the US, France and Japan is putting pressure on their currencies and making investors nervous.

Some have been offloading holdings of US dollars, euros and yen as a result, and the prices of Bitcoin, gold and silver have surged. That’s raised the question of whether investors are making a broader shift into these alternative assets.