Christian Broda Believes the US Dollar Will Remain Strong. Why?

How much has the United States dollar suffered since the financial meltdown of Wall Street and other financial markets in 2008? Like other strong currencies around the world, it turns out that the U.S. dollar (USD) experienced quite a bit of turmoil during the Great American Recession and the global financial crisis. To Christian Broda, Managing Director at Duquesne Capital Management in New York City, the greenback is currently stronger than ever, and this is a testament to the resilience of this important currency.

Speaking to financial news website in February 2014, Christian Broda explained that the USD is looking stronger even as emerging markets are going through their own economic difficulties. Several national economies around the world depend on the USD, and this is something that did not change even as financial markets crumbled and struggled to recover.

Christian Broda has received two grants from the National Science Foundation to conduct economics research. In 2009, Christian Broda co-authored a research paper that correctly posited that inflation levels would remain low in the U.S. even as the national currency lost a little bit of value. Still, he did not think that the USD would surrender its status as the world’s dominating currency. After all, the American dollar is still the currency of choice for many Central Banks to build their reserves with.

These investors may not have made piles of cash on their USD outlook, but they have not experienced any losses. Christian Broda points out that the European and Japan are still struggling with their own versions of Quantitative Easing (QE), and their national currencies are being weakened as such.

The U.S. Federal Reserve, on the other hand, is letting QE policies come to an end, and the greenback is bouncing back across several markets as a result. In the end, Christian Broda believes that investors who are still long on the USD should keep their investments in the greenback and should not worry about major catastrophes.

Be sure to check out Christian on LinkedIn.

One comment

  • Flora Shawn
    February 25, 2017 - 6:27 am | Permalink

    Many institutional investors have been long on the USD ever since the Federal Reserve began enacting strong monetary policies to avoid economic collapse. It also gives me the impression that can do a lot of these things that may make them believe that everything is just fine.

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