North Korea tested a missile that has the capability of reaching the West Coast in late July. In response to recent threats from the country to launch missiles to U.S. island territory Guam, President Donald Trump vowed “fire and fury.”
North Korea’s leader Kim Jong Un decided to back track his plans. He said he would watch the “foolish and stupid conduct of the Yankees.”
If a threat were to become an action, some wonder what type of impact it could have on the U.S. dollar.
“Anytime there’s a disruption like that, it tends to bring people into looking for a haven someplace where they feel secure,” said Dan Hueber of the Hueber Report. “It would tend to bring people back into the dollar knowing there’s some security there that the U.S. government is backing that.”
He notes there is “political turmoil” in the country, but it’s still quite stable compared to other places in the world.
“Long term—barring an extended war or something like that—the dollar’s in trouble over the next two to three years,” he said. “We could see that deteriorate to lower levels.”
Hear his thoughts on why the major grains are projected to work lower in the next year above.