Losers in the US dollar election? Foreign media: it will not rebound sharply and will not fall too much

Foreign media said that during most of Trump’s presidency of the United States, the dollar has been weak. Tax cuts, a widening deficit and several interest rate cuts by the Federal Reserve pushed the dollar lower. But even if trump loses to Biden in the election, the dollar may not rebound sharply soon. According to the cable day report, the reality is that no matter where the U.S. foreign policy goes, increasing government spending may keep the dollar in a downturn. According to the report, < / P > < p > the possible actions of the Federal Reserve in the future should also be taken into account. More and more people are arguing that both Biden and trump should nominate Jerome Powell to serve as chairman of the Federal Reserve. Powell’s term of office will expire in February 2022, so he will have to be nominated again next year to have enough time for Senate approval. According to the report, if Powell stays in office, investors will probably expect interest rates to stay low for longer, which will put further pressure on the dollar. < / P > < p > since trump took office in 2017, the US dollar index, which reflects the exchange rate of the US dollar against the euro, the pound, the yen and several other major global currencies, has fallen by more than 7%. Novel coronavirus pneumonia has been soaring before the economic downturn, but

has fallen by about 3% so far this year, although it is not the worst thing for investors, according to the report. According to the report, < / P > < p > the decline of the US dollar is one of the factors to keep the strong momentum of large technology enterprises and other multinational companies. A weaker dollar is good for companies such as apple, Coca Cola and Procter & Gamble, as it reduces the price of their products and services in foreign markets, thereby improving their competitiveness. There are also accounting benefits. When companies publish quarterly earnings reports, they need to convert their international sales into U.S. dollars, which makes their overseas market revenue appear higher. However, it is worth noting that the U.S. dollar is still a safe and secure investment target in turbulent times. After all, although the world is still in the grip of the epidemic, the U.S. economy grew dramatically in the third quarter after a sharp fall in the second quarter. That’s the key reason the dollar may not fall much further – even if a candidate decides to challenge the election results in court. “I don’t think the U.S. dollar will depreciate significantly further,” Phil toves, chief executive officer of American asset management firm tows, said in an interview with CNN’s business news website. Many other parts of the world are facing the same problem No matter who wins the US presidential election, the long-term trend of the dollar is unlikely to improve, investors and analysts said. Despite the recent rebound in the US dollar index, it is still down about 9% from its march high and is likely to record its worst annual performance since 2017 as US interest rates are expected to remain near record lows in the next few years, according to the report. < / P > < p > many market participants believe that if Biden wins, it may put further pressure on the US dollar, as Biden is expected to adopt policies that investors believe are unfavorable to the US dollar, including a strong fiscal stimulus plan. If trump wins re-election, the policy path for the dollar may not be as clear. Analysts said that although Trump’s continuation of his strong policy toward China may enhance the attractiveness of the US dollar as a safe haven asset, the pressure from factors such as the continued negative real interest rate in the United States may outweigh the above positive effects. According to a Reuters survey in October, analysts’ median forecast is that the euro will rise to $1.21 a year from now, up about 4% from its current level. For many years, the U.S. has had higher interest rates than other developed countries, attracting investors who are chasing profits and thus supporting the dollar, according to the report. This year, the Federal Reserve cut interest rates in response to the impact of the epidemic on the economy and vowed to keep interest rates at historically low levels for several years, reducing the spread advantage. < / P > < p > the inflation adjusted yield on 10-year US Treasury bonds fell below zero during the outbreak in 2020. This has weakened the charm of the dollar and pushed up various assets such as stocks and gold. In the latest week, the futures market had a $26.46 billion net position bet on the US dollar, which hit a nine-year high of $34.07 billion in August. According to the report, < / P > < p > although the net short position reflects the negative sentiment towards the US dollar, if the situation changes and forces investors to close their positions at one time, it may also promote the strength of the US dollar. Trump has been strongly critical of the strong dollar for most of his term, complaining that the appreciation of the dollar has given other countries an unfair competitive advantage in trade.