Stephen Jen has seen more than a few bouts of negative sentiment towards the US dollar but none as severe as today.
“This is the first time in my career that I am really worried about the dollar,” says the head of currency research at Morgan Stanley.
“I didn’t know it was going to go so far. The dollar is in trouble. What has so far been an orderly move can easily degenerate into a more violent event.”
The collapse of the dollar accelerated on Wednesday, falling to a record low of $1.4730 against the euro, taking its losses so far this year to 11.5 per cent against the single currency.
The dollar also tumbled to fresh lows elsewhere – a fresh all-time low against the Canadian dollar, a 26-year trough against the pound and its weakest level in 23 years against the Australian dollar.
The latest catalyst was comments by Cheng Siwei, vice chairman of the standing committee of China’s National People’s Congress.
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