JPMorgan: No Threat to Dollar's "Reserve Currency" Status

JPMorgan: No Threat to Dollar's "Reserve Currency" Status

JPMorgan Chase & Co. Strategists say that the dollar may fall further, but that this is the Goldman Sachs Group Inc. They note that there is no movement as their analysts pointed out last week. "We continue to disagree with the idea that the dollar is in a much broader and longer-running trend based on structural factors," JPMorgan Currency strategists, including Daniel Hui, Paul Meggyesi and Juan Duran-Vara, said in their August 7 notes and "These (structural) factors include 'the dollar losing its reserve currency status' and' the euro recovering from growth difficulties in the region." GOLDMAN: THE DOLLAR'S GLOBAL RESERVE MONEY POSITION IS AT RISK JPMorgan reported that customers had come together with some concerns about inflation as it hopes to strengthen the Fed's efforts to support higher prices. "The emphasis on inflation and the depreciation of the currency has intensified due to the rise of gold to record levels," strategists said. Goldman's commodity strategists touched on the issue last week, saying that there are real fears about the possibility of the US dollar losing its reserve currency position because of America's policy that triggers fears of 'currency depreciation'. JPMorgan strategists pointed out that indicators for inflation expectations have moved on an upward trend recently, and noted that this was due to the dollar's biggest monthly drop last month in 10 years.