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Dollar Weakness Is Turning All Fund Managers Into Currency Traders
GERMANY, JUN 10 – Europe aims to increase the euro's global reserve currency status to gain economic benefits and support joint financing of public goods, amid a 10% US dollar depreciation this year.
- European leaders have responded to Trump’s 'Liberation Day' tariffs and Russia’s invasion of Ukraine by advancing eurobond issuance and defense spending to strengthen the euro's global role.
- This effort arises amid a weakening US dollar, slowing global growth from 2.8% to 2.3%, and US economic growth halving from 2.8% to 1.4%, according to recent World Bank reports.
- The euro remains less dominant than the US dollar, which accounts for 58% of central bank reserves and $28 trillion in Treasury securities, while the eurobond market is much smaller but growing.
- ECB President Lagarde emphasized the benefits of a stronger international euro, calling it key to borrowing cheaper, boosting internal demand, and providing protection from exchange rate volatility.
- While a short-term displacement of the dollar is unlikely, these steps mark a long-term strategic push to expand the euro's reserve currency role and geopolitical influence.
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16 Articles
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·Italy
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The euro grew almost a penny.
The US dollar remains by far the number one, but the erratic trade policy of US President Trump is burdened.
Sydney Morning Herald+2 Reposted by 2 other sources
Has Trump created an opportunity for the euro to displace the US dollar?
Donald Trump’s trade wars may have opened a window of opportunity for the European Union to realise a long-held ambition: establishing the euro as the world’s reserve currency.
·Sydney, Australia
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Coverage Details
Total News Sources16
Leaning Left4Leaning Right0Center3Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 43%
Factuality
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