When you have a period of dollar weakening on unprecedented easing by the Fed, this is pro-risk. If the dollar would start to go in reverse where it starts getting stronger, that’s going to take back some of the easing from the Fed and it’s going to create an anti-risk market.
People are still looking to the U.S. dollar as a hedge against risk when everything starts selling off.
U.S. President Donald Trump on Monday said he was rebuffed when he asked officials to adjust the exchange rate of the dollar to counteract what he described as repeated currency manipulation by China of its yuan.
Russ Koesterich, portfolio manager at BlackRock Global Allocation Fund, discusses the U.S. dollar and its status as a safe haven hedge. He speaks on “Bloomberg Surveillance.”