, Columnist
The Euro's Strength Against the Dollar Might Become Contagious
The recent move into the single currency could turn into an investor stampede if dollar flight takes hold.
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Photographer: Ulrich Baumgarten/Ulrich BaumgartenThis article is for subscribers only.
The euro is becoming the go-to currency for safety and liquidity as we approach the U.S. presidential elections and investors bet on a rocky time for the dollar. This may be a source of pride for European policy makers in how they’ve handled the pandemic so far. Unfortunately, it’s a potential problem for exporters on the continent, not least its manufacturers.
As Kit Juckes, a currency analyst at Societe Generale SA, puts it: “The dollar’s very overvalued but the euro isn’t very undervalued.”