The US dollar was the best performing currency in the world in 2014 and is likely to continue its bull run and reign supreme in 2015, one of the world’s foremost foreign exchange (FX) strategists has said.

Global head of FX Strategy at HSBC Bank David Bloom was speaking at a business breakfast organised by HSBC Malta. HSBC FX Strategy is regarded as the best in the world and has just published long-term FX forecasts up to 2021.

“A stronger USD would help deliver a dose of much needed inflation to those nations facing excessively low inflation. While the scale of a USD rally required to bring inflation all the way back to target in the likes of the Eurozone would likely be unpalatable to US policymakers, USD strength will still help stave off the deflation threat,” said Mr Bloom.

“It may not be able to save the world, but it will certainly buy time,” he added.

Talking about the role of currency fluctuation in the economy, Mr Bloom said that while historically, currency wars were a battle over market share in export markets, designed to help support a country’s balance of payments position and rebalance growth, they are today a tool to import inflation or export deflation to ward off threats.

During the event, HSBC Malta’s CEO Mark Watkinson said: “HSBC’s global network allows it to capture emerging opportunities from around the world and to bring unrivalled insight to its customers so as to allow more informed decisions.”

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