Four factors that drive US dollar

Despite the weakening of the dollar by 10% against world currencies, the risks of its collapse are greatly exaggerated.

There are four factors that can trigger the devaluation of the US currency, Report states, citing the Financial Times.

Firstly, the dollar is no longer perceived by investors as a safe-haven currency against the backdrop of the start of vaccination against COVID-19. Secondly, the monetary policy of the US Federal Reserve continues to soften.

Moreover, the country has long been experiencing a budget deficit, and the cheapening of the currency can positively impact the attractiveness of national assets.

Finally, many experts predict the decline of the United States in the geopolitical arena, because of which the dollar may lose its status as the world's leading currency.