King Dollar Dethroned From Safe-Haven Perch in Carry-Trade Shift
The euro and the yen have quietly usurped the dollar as the world’s favorite haven, according to Bank of America Corp. strategists.
…”The dollar no longer displays dominant ‘safe-haven’ behavior unless the risk-off is driven by China or Korea concerns,” Sinha and his colleagues in Hong Kong and London wrote.
Foreign-exchange havens including gold outperformed the dollar on a volatility-adjusted basis when the bank’s Global Financial Stress Index showed market dislocations over the past three years.
PG View: This is part-and-parcel of the more broad ongoing erosion of the dollar as the global reserve currency.