Intel heads into its April 23 earnings with rising investor expectations , but the key question remains whether AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from 39.2% a year ago EPS near breakeven (~US$0.00) vs US$0.13 last year This highlights continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with Alphabet , which reinforces: Intel’s role in AI data centre infrastructure Growing demand for AI inference and general-purpose computing Investors will watch c...
The US dollar’s global dominance remains firmly entrenched, with any meaningful challenge likely decades away, according to Franklin Resources Inc.
Structural Strength Still Supports the Dollar
Sonal Desai, Chief Investment Officer at Franklin Templeton, highlighted three core pillars underpinning the dollar’s status:
- Scale of the US economy
- Depth and liquidity of financial markets
- Strong institutional credibility
These factors continue to make the dollar the primary global reserve currency, with no immediate rival capable of matching its ecosystem.
No Credible Alternatives in Sight
Despite growing debate around de-dollarisation, key alternatives face structural limitations:
- The euro lacks a unified safe asset at scale
- China’s Renminbi remains constrained by capital controls and limited convertibility
- Other assets like gold and cryptocurrencies lack the institutional framework and liquidity depth required
As a result, Desai notes that the “real competition” to the dollar is not yet visible.
Dollar Weakness Seen as Cyclical, Not Structural
Recent softness in the dollar is viewed as temporary and cyclical, rather than a sign of structural decline.
Even with recent volatility tied to:
- Geopolitical tensions
- Trade and fiscal policy uncertainty
the dollar remains well above historical lows in real trade-weighted terms, reinforcing its long-term resilience.
Dominance Reflected in Global FX Markets
Data from the Bank for International Settlements (BIS) underscores the dollar’s dominance:
- Involved in 89% of global FX transactions
- Far ahead of the yuan at just 8.5%
This highlights the dollar’s central role in global trade, finance, and capital flows.
Investor Takeaways
- The US dollar remains the dominant global currency, supported by strong structural fundamentals.
- No credible alternative exists in the near term, with structural barriers limiting rivals.
- Recent dollar weakness is cyclical, not a sign of long-term decline.
- The dollar’s dominance in global FX markets (89% share) reinforces its position.
- Investors should view dollar fluctuations as short-term cycles within a long-term leadership trend.
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