Live Updates > Live Update Details
2026-09-18 12:00:09
[Standard Chartered: Warsh May Have Removed the Biggest Barrier to Buying the Dollar, While Creating the Biggest Barrier to Selling the Dollar] (1) Standard Chartered Bank says that Federal Reserve Chairman Kevin Warsh may have removed the biggest barrier to buying the dollar, while creating the biggest barrier to selling the dollar. (2) In a report to clients on September 17, Standard Chartered’s Global Head of G10 FX Research, Steve Englander, wrote that the biggest barrier to buying the dollar was previously concerns about currency depreciation. (3) The biggest barrier to selling the dollar is that the nominal and real interest rate differential makes the dollar unattractive as a funding currency, making hedging costs high for dollar asset holders. (4) Englander believes that Warsh may have reduced the short-term upward resistance to the dollar because the FOMC’s 25 basis point rate hike made the market more confident in pursuing high yields and increased hedging costs. The biggest risk currently facing the dollar is a decline in the outlook for US economic growth.
