For debate
While many banks have models how the flow of the end can affect currencies, the market participants say they have become less reliable since the epidemic.
The demand for dollars from US companies can still trigger “Snap Back” in currency in the coming weeks, although when and at what level it could be, it was “more of an art than a science,” Franceska Fornasari said, the head of the currency solution in the asset manager investment.
“Usually, when you have a big step less in dollars, you hope that American corporates will come and actually start buying some dollars. It’s based on the numbers that we see it has not really happened,” he said. “You can understand why this has not happened because the step in the dollar has become so fast.”
Some analysts have warned that there are still early days to judge the approach to the dollar within a few weeks of selling, concerns about its situation emerge every few years and are usually batted by a resurrection.
For investors in search of security against uncertainty, hedge a constant slide has become more expensive. According to Vishnu Varthan, the head of economics and strategy at Mizuho Bank Limited in Singapore, the situation has increased on dollars from customers.
“The flow of the end of the month can reduce real pain if you are wrong on the posture,” he said. “D-delarization is a long-term trend, and it can potentially provide the markets another information where it is leading. How clear it will be that it is for debate as a long-term indicator.”
(Tagstotransite) dollar (T) currency
