Shifting global investment patterns are challenging the strength of the U.S. dollar, according to a top commodities broker.
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00:00My outlook for the US dollar is relatively bearish it we had a nice rally after trump was elected in november again part of the trump trade the idea was it would be we have a stronger dollar due to tariffs and inflation those sorts of things.
00:14What really ended up happening out was a lot of hot money from around the world came into us stock market there is an idea that.
00:21Of us exceptionalism i'm not gonna argue that one way or the other but that's the reality money flowed into the US went into stocks and in the meantime it pumped the US dollar up and now we're seeing that kind of rewind itself.
00:34I think it's gonna continue if you look at trump 1.0 we saw the dollar start off elevated and it continually worked its way lower through the four years.
00:42I think at the time we're around 1.03 we ended up around 88 towards the end of his tenure so i don't necessarily expect to see an 80 handle but i think we can see the low 90s in the dollar so i expect it to weaken.
00:55I do think the dominance of the US dollar is at risk not necessarily for political reasons but simply for money out in an outflow reasons for example.
01:02Money that the hot money that came into the dollar and the US stock market after the election of president trump is now.
01:09Working itself out and that's gonna be a process that has to work its way through the system i don't think it's it's done yet i'm expecting the dollar to head quite a bit lower.