The US dollar could suffer a major sale by Asian investors and exporters who are activated by trade tensions, according to a few macro-economic and currency rates.
The analysts of Eurizon SLJ Capital Stephen Jen Jen Jen and Joana Freireat say in a new investment bill that Asian investors have collected a huge stack of USD that can be dumped massively as trade wars and the dollar weakened, weakened, weakened, weakened, weakened report Bloomberg.
According to the analysts, if the US -driven trade conflict grows, a considerable number of Asian investors could bring home a substantial capital or strengthen their defense against a decreasing USD.
They warn that, could leave the dollar with an “avalanche” of $ 2.5 trillion.
“We suspect that these dollar hammers can be extremely large by Asian exporters and institutional investors in the order of $ 2.5 trillion or so and sharp downward risks for the dollar compared to this Asian currency.”
Bloomberg says that his dollar meter has fallen around 8% from a High February. In the meantime, Asian currencies have strengthened versus the Greenback last month.
President Trump signed an executive order in April that imposed a rate of 10% on all imported goods that entered the US, with the aim of increasing domestic production. The president also issued a proclamation that hit mutual rates in dozens of countries.
The Trump government says it is currently working on more than a dozen countries around the world to make new trade agreements.
In the meantime, the American Finance Minister Scott Bessent and trade representative Jamieson Greer will meet their Chinese counterparts to discuss trade and economic issues in Switzerland this week.
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