Dollar Under Siege With U.S. Deficits Back on Wall Street's Radar
- Greenback seen suffering on fiscal, current-account shortfalls
- TD Securities says dollar overvalued 10% on longer-term basis
Global Growth Cycle Is Main Force of FX Market, Says Hans Redeker
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America’s fiscal largesse and the specter of wider current-account shortfalls are fueling a renewed wave of dollar bashing.
Congress’s bipartisan vote last week to increase spending by nearly $300 billion over the next two years comes on the heels of a $1.5 trillion tax cut that could boost domestic demand and the country’s trade gap. Strategists are taking heed, zeroing in on America’s twin deficits as a likely catalyst of continued greenback weakness following February’s brief respite.