Appetite for US Dollar Swaps Declines as Worldwide Risks Subside
Dollar Demand Declines Amid US-Iran Ceasefire
Recent trends in the $9.5 trillion global foreign exchange market indicate a drop in demand for the US dollar, coinciding with the fragile truce between the United States and Iran. Data from cross-currency basis swaps—which reflect the additional cost or benefit of obtaining dollars abroad rather than domestically—reveal a consistent decrease in interest for the dollar, especially when compared to the euro and Swiss franc.
Nathan Thooft, a senior portfolio manager at Manulife Investment Management, commented, "This represents a straightforward unwinding of previous dollar positions. The dollar had been one of the few assets to gain during the height of the crisis, but that trend is now reversing."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum liquid staking governance tokens fall ahead of Shapella upgrade
Two-thirds of Americans don’t trust crypto: Pew Research
Could Bitcoin Ever Break the 21 Million Cap? Adam Back Says It’s a Trap
Update for XRP Holders: $3 Trillion Citibank Drops Major Statement On CLARITY Act
