Alia McMullen,Financial Post
Obama Tax and Spend policies are destroying the US dollar
The U.S. dollar’s day of reckoning may be inching closer as its status as a safe-haven currency fades with every uptick in stocks and commodities and its potential risks –debt and inflation –are brought under a harsher spotlight.
Ashraf Laidi,chief market strategist at CMC Markets,said Wednesday a “serious case of dollar damage”was underway.
“We long warned about the day of reckoning for the dollar emerging at the next economic recovery,”Mr. Laidi said in a note.
Mr. Laidi said economic recovery would weigh on the greenback as real demand for commodities,coupled with improved risk appetite,caused investors to seek higher yields in emerging markets and commodity currencies. This would draw investment away from the U.S. dollar,which was dragged down by growing debt and the risk quantitative easing would eventually spark a surge in inflation.