Paresh Upadhyaya
Paresh Upadhyaya
australian concern decline dollar global scenario
The Australian dollar is a proxy for global growth. My concern is of a more precipitous decline in the Australian dollar under the scenario of faltering global growth.
cyclical dollar fed namely raising rates
The dollar has been propelled by cyclical factors, namely the Fed raising rates boosting the dollar.
account becomes current deficit investors shun weigh
Once investors shun away from U.S. investments, then the current account deficit becomes an issue. It will weigh heavily on the dollar.
attractive banks begin begins central chinese concluded dollar downward driving exposure far fed foreign given higher interest leads moving neutral peaked rate risk
The Chinese probably concluded they have far too much exposure to the dollar, and that the dollar has peaked for this cycle, given the Fed may be moving to a neutral position. Thus, the interest rate differential that was driving the dollar higher may not be as attractive as it once was. The risk is now the dollar may begin to depreciate. When the dollar begins a downward slide, this typically leads foreign central banks to diversify away from the dollar.