Original title: the US dollar hovered near its one-month low, and the three negative fears led to a sustained negative decline in the future.
The dollar index fell to a near one-month low on Wednesday as solid earnings from listed companies pushed the S & P 500 close to record highs, and the dollar fell against all other Gmur10 currencies.
In its latest compilation of economic reports, the Fed said the US economy grew at a "moderate to moderate" pace in September and early October as a new wave of the COVID-19 epidemic slowed and began to fade.
The US dollar is the dominant international reserve currency, and the status of the reserve currency largely depends on the size and strength of the US economy and the dominant position of the US financial market, but will the attractiveness of the US dollar be greatly reduced? thus causing serious problems in financing the United States? Economists at the French Bank of Foreign Trade reported that the dollar's attractiveness may have declined for several reasons.
Risk of fiscal and external solvency loss in the United States
The United States is characterized by a double deficit: fiscal deficit and external deficit, so investors may worry about the parallel trend of fiscal solvency loss and external solvency loss. From 2002 to 2008, such concerns emerged and led to a sharp fall in the exchange rate of the dollar.
The structural deterioration of the US economy
Productivity growth andParticipation rates have declined, especially in the United States, where we calculate the same way as in the euro zone, which may be due to a low level of skills, which could lead to a significant decline in potential growth. In addition, policies to reduce dominance in the US will depress share prices and make the US less attractive to equity investors.
Greater credibility of the euro
The development of policies of co-operation among eurozone countries could lead to European savings financing eurozone investment rather than lending to the rest of the world, particularly the US.
At 15:57 Beijing time, the dollar index was at 93.650.67.