The currency markets are currently facing 'multiple cross-currents' amid fears over a potential second wave of coronavirus cases in the world, said Deutsche Bank's Sameer Goel.
A "big question" for investors right now over the U.S. dollar is whether it should be trading at a safe-haven risk premium as concerns rise over a potential second wave of virus infections, Goel told CNBC's "Street Signs" on Monday.
Asked about the outlook for the Chinese yuan, Goel said the fundamentals for the currency in terms of the underlying balance of flows are "very much getting more favourable."The currency markets are currently facing "multiple cross-currents" amid fears over a potential second wave of coronavirus cases in the world, said Deutsche Bank's Sameer Goel, who is chief Asia macro strategist.
He said that in a potential resurgence of cases, the U.S. dollar could weaken against most of its peers in developed markets, and to an extent, possibly China too.. More than 30,000 new cases were reported on Friday and Saturday — the highest daily totals since May 1, according to data compiled by Johns Hopkins University.also stoked concerns of a potential resurgence of the virus in the country, where Covid-19 was first reported before it spread to the rest of the world.stood at 97.
As China progressively opens up its financial markets, and is being included in various indexes, and introduces more local currency-denominated assets, the "portfolio flow story incrementally does become more positive" for the yuan, the strategist said.
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