Nomura explains why the dollar rate will continue to decline

The group of currency strategists Nomura emphasizes that in the long term it continues to see the general tendency to weakening the US dollar. There are 3 reasons for this:
1. Weakness of the US currency, which we have observed so far, is caused by a decrease in profitability in the US. But not only.
2. The balance of payments also has a negative impact on the currency. The United States offers investors too low real yield, given the size of the existing deficits. To level the situation, it is necessary, or further weakening of the dollar, that US assets have become more attractive, or an increase in profitability in the US, or both.
3. The policy of the administration of Donald Trump will continue to focus on a weaker rate of the US currency. Political risks in the US will continue to put pressure on the dollar, while the situation in the euro area will continue to show improvement.
In Nomura are confident in the further weakness of the dollar, both in relation to the euro, and against the yen.

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