Market news
26.03.2021, 08:00

US dollar to depreciate once yield spread against the rest of the world stabilises – Natixis

FXStreet reports that Natixis said that the appearance of excess supply of dollars held by the rest of the world will lead the dollar to depreciate.

“The strong expected growth in the US is visibly driving up US long-term interest rates. This has resulted in an increase in international demand for dollars, which has led to an appreciation of the dollar in the most recent period. Then, dollar long-term interest rates will stabilise, leading also to a stabilisation of international demand for dollars. Yet the sharp growth in US domestic demand will lead to a significant deterioration in US foreign trade.”

“As long as the dollar’s interest rate is rising, demand for dollars expressed in foreign currencies will rise at a constant exchange rate, balancing the increase in the supply of dollars.”

“Once the dollar’s interest rate has stabilised, the only way to increase non-resident demand for dollars expressed in dollars, when it is stable expressed in the rest of the world’s currencies, is a depreciation of the dollar.”

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location