Analyst: The US dollar's safe-haven status is shaken, government shutdown may exacerbate downward risks.

According to Mars Finance, on September 30, market analysts stated that the dollar has faced selling during a long and uncertain period this year, while in the past, such periods often prompted investors to buy dollars. In contrast, traders have been buying euros, gold, yen, and francs. If the U.S. government shuts down again, it could pose a hidden risk. Historically, the dollar's performance during shutdowns has been mixed; sometimes it has risen due to its status as a reserve currency, but now that possibility seems greatly reduced. In addition to the apparent loss of the dollar's "safe haven status," there are several other factors to consider if the government shuts down again. The Fed has just restarted its easing cycle and is more likely to continue cutting interest rates; rating agencies like Moody's downgraded the U.S. long-term rating in May, and its subsequent outlook will also be affected. Recently, traders have been buying dollars, reducing net short positions from $18 billion in July to $6 billion. This leaves them unprepared for events that could weaken the dollar, and with the dollar no longer seen as a safe asset, this risk is heightened. ( Jin10 )