We are often asked if the U.S. dollar will lose its status as the world’s reserve currency. Investors are concerned that the Federal Reserve’s easy monetary policy, combined with rising budget deficits, will undermine confidence in the dollar. The recent drop in the dollar over the past year has heightened these concerns. While we agree that there can be unforeseen consequences from the current policy mix, we believe the dollar’s role as the dominant global currency looks secure. What are reserve currencies? Reserve currencies are typically issued by large, developed countries with records of financial stability. To ... (full story)