{"id":17393,"date":"2023-02-08T04:28:19","date_gmt":"2023-02-08T04:28:19","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-dollar-to-keep-losing-its-appeal-as-safe-haven-currency-of-last-resort-says-strategist-economics-bitcoin-news\/"},"modified":"2023-02-08T04:28:19","modified_gmt":"2023-02-08T04:28:19","slug":"us-dollar-to-keep-losing-its-appeal-as-safe-haven-currency-of-last-resort-says-strategist-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-dollar-to-keep-losing-its-appeal-as-safe-haven-currency-of-last-resort-says-strategist-economics-bitcoin-news\/","title":{"rendered":"US Dollar to Keep Losing Its Appeal as Safe-Haven Currency of Last Resort, Says Strategist \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Pacific Investment Management Company (PIMCO) expects the U.S. dollar to \u201ccontinue to lose its appeal as the safe-haven currency of last resort.\u201d The $1.74 trillion asset management firm added that the USD \u201cis likely to fall further in 2023 as inflation falls, recession risks decline, and other shocks abate.\u201d<\/strong><\/p>\n

PIMCO Strategist Warns About USD<\/h2>\n

Pacific Investment Management Company (PIMCO) has predicted a significant downtrend for the U.S. dollar this year. PIMCO had $1.74 trillion in assets under management as of Dec. 31, 2022.<\/p>\n

Gene Frieda, an executive vice president and global strategist at PIMCO, said in a blog post last week:<\/p>\n

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We expect the USD will continue to lose its appeal as the safe-haven currency of last resort.<\/p>\n<\/blockquote>\n

\u201cWe believe risk premiums will decline as inflation \u2014 and monetary policy volatility decline. New shocks are clearly a risk, but the risk premium in the USD (and cross-asset volatility) remains substantial, in our view,\u201d Frieda added.<\/p>\n

\u201cWhile higher yields clearly worked in the dollar\u2019s favor last year, any forward-looking view must also take into account how the dollar was buoyed by the shocks of 2022,\u201d the strategist explained, and \u201cthe extent to which they may abate in 2023.\u201d He noted that some of the shocks were the Russia-Ukraine war, the spike in energy prices, and inflation.<\/p>\n

The executive detailed:<\/p>\n

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PIMCO believes the dollar, which has depreciated since hitting a 20-year peak last September, is likely to fall further in 2023 as inflation falls, recession risks decline, and other shocks abate.<\/p>\n<\/blockquote>\n

PIMCO believes that \u201cthe dollar\u2019s yield advantage versus other developed economies will narrow\u201d over the coming months, Frieda said. \u201cGiven the faster pace of cumulative rate hikes on the way up, the USD\u2019s yield advantage is likely to fall in the early stages of a rate-cutting cycle, even if the dollar sustains its relatively high yield.\u201d<\/p>\n

Do you agree with the PIMCO strategist about the U.S. dollar losing its appeal as a safe-haven currency of last resort? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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