Dollar weakness and fears of a pound plunge in a hard Brexit scenario are prompting a growing number of Britons to buy dollars, reveals the CEO of one of the world’s largest independent financial advisory organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, which operates in 100 countries globally, follow the Dollar Index, which tracks the greenback against a basket of six other currencies, falling 0.5% on Monday, trading at levels not seen since May 2018.
The downside moves ahead of the Federal Reserve’s policy meeting later this week.
Mr Green notes: “A sharp dollar sell-off on Monday is being seen by Brits who think internationally as an opportunity to buy dollars as they are fearing a sharp plunge in the pound in the event of a no-deal Brexit – which is looking increasingly inevitable.
“The dollar is being weighed down by concerns over the strength of the U.S. economic recovery, the presidential election which creates uncertainty, plus the mounting tensions between Washington and Beijing.
“Whilst the ‘greenback’ – a robust safe-haven asset in times of turbulence – is down, quite sensibly Brits are moving in to buy it as a considerable drop in sterling can be expected if the UK crashes out of the EU in December without a deal.”