LONDON (Reuters) – There are some indicators of de-dollarisation rising proper now, however the greenback ought to retain its “giant footprint” for the foreseeable future, JPMorgan forex strategists stated in a notice on Monday.
“Placing collectively varied measures, general USD utilization stays inside its historic vary with the greenback at high of the pack, however utilization is bifurcated below the hood,” strategists Meera Chandan and Octavia Popescu on the Wall Road financial institution wrote.
The greenback’s share of traded forex volumes is simply shy of document highs, at 88%, whereas the euro’s share has shrunk by 8 share factors within the final decade to a document low of 31%. The share of the Chinese language yuan, in the meantime, has risen to a document excessive of seven%.
“De-dollarisation is obvious in FX reserves the place (the greenback’s) share has declined to a document as share in exports declined, however continues to be rising in commodities,” the strategists stated.
(Reporting by Amanda Cooper; Enhancing by Karin Strohecker)