NATIONALISM AND FINANCE: In light

NATIONALISM AND FINANCE: In light of the Euro hitting a four-year high against the dollar today, this CNN story should provide a cautionary warning for those who believe that nationalism plays no role in global financial markets: The key grafs: Interestingly, while this view [that the dollar needs to fall further] is more or less ...

By , a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast.

NATIONALISM AND FINANCE: In light of the Euro hitting a four-year high against the dollar today, this CNN story should provide a cautionary warning for those who believe that nationalism plays no role in global financial markets: The key grafs:

NATIONALISM AND FINANCE: In light of the Euro hitting a four-year high against the dollar today, this CNN story should provide a cautionary warning for those who believe that nationalism plays no role in global financial markets: The key grafs:

Interestingly, while this view [that the dollar needs to fall further] is more or less seen as gospel in the rest of the world, it’s not the majority view in the States, according to Merrill Lynch’s April survey of 314 fund managers, both foreign and domestic. In that survey, when asked to pick their “favorite currency,” 65 percent of global respondents picked the euro. Their least favorite? For 57 percent of the world, it was the greenback. And a whopping 66 percent of overseas fund managers thought the greenback was still too dear, despite its recent decline. In comparison, only 34 percent of U.S. respondents thought the dollar was overvalued…. The Merrill Lynch survey showed 56 percent of overseas fund managers thought U.S. equity markets still the most overvalued in the world — compared with just 24 percent of U.S. managers…. In the Merrill Lynch survey, 42 percent of foreign fund managers said the swollen U.S. current account deficit worried them enough to make them hedge some or all of their exposure to a possible dollar decline. Just 21 percent of U.S. respondents had done the same.

Daniel W. Drezner is a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast. Twitter: @dandrezner

More from Foreign Policy

Newspapers in Tehran feature on their front page news about the China-brokered deal between Iran and Saudi Arabia to restore ties, signed in Beijing the previous day, on March, 11 2023.
Newspapers in Tehran feature on their front page news about the China-brokered deal between Iran and Saudi Arabia to restore ties, signed in Beijing the previous day, on March, 11 2023.

Saudi-Iranian Détente Is a Wake-Up Call for America

The peace plan is a big deal—and it’s no accident that China brokered it.

Austin and Gallant stand at podiums side by side next to each others' national flags.
Austin and Gallant stand at podiums side by side next to each others' national flags.

The U.S.-Israel Relationship No Longer Makes Sense

If Israel and its supporters want the country to continue receiving U.S. largesse, they will need to come up with a new narrative.

Russian President Vladimir Putin lays flowers at the Moscow Kremlin Wall in the Alexander Garden during an event marking Defender of the Fatherland Day in Moscow.
Russian President Vladimir Putin lays flowers at the Moscow Kremlin Wall in the Alexander Garden during an event marking Defender of the Fatherland Day in Moscow.

Putin Is Trapped in the Sunk-Cost Fallacy of War

Moscow is grasping for meaning in a meaningless invasion.

An Iranian man holds a newspaper reporting the China-brokered deal between Iran and Saudi Arabia to restore ties, in Tehran on March 11.
An Iranian man holds a newspaper reporting the China-brokered deal between Iran and Saudi Arabia to restore ties, in Tehran on March 11.

How China’s Saudi-Iran Deal Can Serve U.S. Interests

And why there’s less to Beijing’s diplomatic breakthrough than meets the eye.