The dollar had also reacted to the country’s surging deficit and the prospect of U.S. interest rates remaining lower for longer. The dollar index fell to a 27-month low last week at 92.477, a steep decline from its 102 level in March. Analysts argue, however, that recent fears that the dollar may lose its status as the world’s reserve currency are overblown. Research firm Capital Economics’ senior economist Jonas Goltermann says talk of the dollar’s downfall is “greatly exaggerated.”He said dollar bears have pointed to the greenback’s declining share of global foreign exchange reserves over the past few years. In fact, Goltermann argues that the coronavirus crisis has “reinforced” the dollar’s role as the key global currency.

Source: The Standard August 24, 2020 05:03 UTC