Dollar May Weaken in Near Term: News

The U.S. dollar may enter a phase of weakness if vaccines help bring the pandemic under control and the market shifts to more risk-tolerant assets, the Financial News reported citing Guan Tao, chief economist at BOC International Securities and a former official at China's FX regulatory agency. The dollar will remain a critical global currency even as some observers want to reduce the risks of holding dollar-denominated assets exposed to U.S. government-imposed sanctions, the surging U.S deficit and poor governance, Guan said. The incoming U.S. administration is expected to embrace multilateralism, which may strengthen the dollar's global position, Guan told the newspaper.