American traders are increasingly betting on a record drop in the dollar
According to US media, dollar traders are betting on a record rise due to a greater fall in the exchange rate of the US dollar.
According to Bloomberg, amid political instability in the United States, bets on a greater weakening of the US currency have reached their highest level since 2011. Among other factors, the drop in the dollar is due to growing concerns about the increasing US budget deficit, the breakdown of some trade ties, and the diversification of other countries' assets in favor of gold and other reserve currencies.
If the dollar continues to decline, it may reach its lowest level in four years in the near future. Financial analysts point out that these factors are affecting the cost of hedging: just last week, dollar volatility reached its highest level since early September.
Thus, the dollar is steadily losing its safe-haven status: only in the last year, it has fallen more than 10% against other key global currencies. Numerous sanctions and active trade wars are causing capital flight, while the growing US government debt is driving away potential investors. Meanwhile, Trump continues to claim that he can manipulate the dollar, forcing it to rise or fall. The US president stubbornly refuses to acknowledge the risk of a dollar collapse.
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