Standard Chartered Bank said that Federal Reserve Chairman Kevin Walsh may have removed the biggest obstacle to buying dollars and created the biggest obstacle to selling dollars. Steve Englander, the global head of G10 foreign exchange research at Standard Chartered Bank, wrote in a report to clients on September 17 that the biggest obstacle to buying dollars before was concerns about currency depreciation. He added that the biggest obstacle to selling dollars is that nominal and actual interest spreads make the dollar unattractive as a financing currency, making the hedging cost high for dollar asset holders. Englander believes that Walsh may have reduced the resistance to the short-term rise of the dollar because the Federal Open Market Committee raised interest rates by 25 basis points, making the market more at ease in chasing high yields and increasing hedging costs. He said that the biggest risk facing the US dollar at present is the decline in the US economic growth prospects.

Standard Chartered Bank said that Federal Reserve Chairman Kevin Walsh may have removed the biggest obstacle to buying dollars and created the biggest obstacle to selling dollars. Steve Englander, the global head of G10 foreign exchange research at Standard Chartered Bank, wrote in a report to clients on September 17 that the biggest obstacle to buying dollars before was concerns about currency depreciation. He added that the biggest obstacle to selling dollars is that nominal and actual interest spreads make the dollar unattractive as a financing currency, making the hedging cost high for dollar asset holders. Englander believes that Walsh may have reduced the resistance to the short-term rise of the dollar because the Federal Open Market Committee raised interest rates by 25 basis points, making the market more at ease in chasing high yields and increasing hedging costs. He said that the biggest risk facing the US dollar at present is the decline in the US economic growth prospects.