Stanley Druckenmiller, a prolific American investor, has stated that he is currently bearish on the US currency.
Druckenmiller, also known as “The Druck,” reportedly told the Financial Times that the U.S. dollar had a strong run in recent years, but is now at the beginning of a protracted correction.
Druckenmiller collaborated with billionaire financier and market expert George Soros in 1992 to short the British pound against the German deutsche mark, resulting in a profit of over $1 billion.
Druckenmiller’s next move will be to wager against the US dollar and the “weaponization” of the USD, which American authorities have brought to the international stage, much to the displeasure of other nations. In addition, he anticipates that US policymakers will eventually proceed with interest rate cuts and currency debasement, propelling his short position.
The former chairman of Duquesne Capital told the conference that he anticipates “a lot of swings” as the United States proceeds towards an inevitable recession. According to reports, he believes in a “hard landing,” or an abrupt and volatile transition from economic development to decline.
The Druck echoes the sentiments of other prominent macroeconomic analysts who are currently confronting the shifting chessboard of financial markets.
In a recent report, Stephen Jen and Joana Freire of the asset management firm Eurizon SLJ Capital stated that Asia, Latin America, Africa, the Caribbean, and the Pacific Islands – collectively known as the Global South – were abandoning their US dollar reserves.
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