Summary The dollar, the world's No. 1 reserve currency, has risen roughly 1.8% since the start of the Iran war in late February given its safe-haven credentials
LONDON (Reuters) – The dollar will likely weaken over the long-term given concerns over elevated US debt levels, the EMEA CEO of JPMorgan Asset Management said on Thursday.
The dollar, the world's No. 1 reserve currency, has risen roughly 1.8% since the start of the Iran war in late February given its safe-haven credentials.
"The hegemony of the US Treasury is still alive and well...but we look at the fiscal balance and trade and the ability to pay back that debt," said Patrick Thomson, CEO EMEA at JPMorgan Asset Management at a panel at an ICMA conference in London.
"There is an argument to say over the long term the US dollar will weaken. The dynamic of the fiscal position in the US is creating that level of debt that is not sustainable in the long run," said Thomson.
Europe could be a harbour for safe assets, he added.
