Internation Business Times: Is the Dollar Heading for A Crash? More Analysts Join the Chorus of Doom
Article by Aartie Rau in International Business Times
A group of Goldman Sachs analysts has added their voice to the chorus that the greenback will lose its dominant position as the global currency going forward. The analysts cautioned that the Federal Open Market Committee’s policy would lead to fears of further depreciation of the dollar, Bloomberg reported.
Goldman Sachs’ view came on the heels of the U.S. Fed Reserve’s meet earlier this week in which it announced of a fresh round of fiscal stimulus while maintaining a status quo on interest rates -- its benchmark interest rate remained unchanged near zero.
Goldman said the printing of money would lead to increased inflation in the coming years and has resulted in investors offloading dollars to buy gold. Bloomberg quoted the Goldman strategists in its report: “Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows. Now there are “real concerns around the longevity of the dollar as a reserve currency.”
The view that the dollar is heading for a crash has gained increasing traction among analysts recently.
Economist Stephen Roach voiced the same opinion while speaking on CNBC’s 'Trading Nation' last month. He predicted that the dollar will decline sharply against other currencies in the near future. He said, “The dollar is going to ....
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