FX Alpha 15 October 2013

Will the US exorbitant privilege destroy itself?


The FX market still is relaxed about the US budget crisis, given that a last-minute solution seems to be likely again. We argue, however, that the developments so far pose a long-term risk for the dollar. US politicians one day might damage the US dollar’s status as the world’s dominant currency, whatever they will do to solve the current crisis.

To know more click here PDF