LONDON, May 28 (Reuters) – The dollar will likely weaken over the long-term given concerns over elevated U.S. debt levels, the EMEA CEO of JPMorgan Asset Management said on Thursday. The dollar, the world’s No.1 reserve currency, has risen roughly 1.8% since the start of the Iran war in late February given its safe-haven credentials. […]
Business
Dollar likely to weaken over long-term due to U.S. fiscal dynamics, JPMorgan Asset Management exec says
Audio By Carbonatix
LONDON, May 28 (Reuters) – The dollar will likely weaken over the long-term given concerns over elevated U.S. debt levels, the EMEA CEO of JPMorgan Asset Management said on Thursday.
The dollar, the world’s No.1 reserve currency, has risen roughly 1.8% since the start of the Iran war in late February given its safe-haven credentials.
“The hegemony of the U.S. Treasury is still alive and well…but we look at the fiscal balance and trade and the ability to pay back that debt,” said Patrick Thomson, CEO EMEA at JPMorgan Asset Management at a panel at an ICMA conference in London.
“There is an argument to say over the long term the U.S. dollar will weaken. The dynamic of the fiscal position in the U.S. is creating that level of debt that is not sustainable in the long run,” said Thomson.
Europe could be a harbour for safe assets, he added.
(Reporting by Yoruk Bacheli and Nell Mackenzie; Writing by Dhara Ranasinghe; editing by Alun John)