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- Analyst says the U.S. dollar is "increasingly dysfunctional".

- Identifies three geopolitical drivers that are pressuring the dollar.

- Oil trade is seen as key to Chinese yuan popularity.

A combination of geopolitical pressures could spark the end of the U.S. dollar as the world's reserve currency, according to the head of FX strategy at Saxo Bank.

The currencies analyst highlighted these three geopolitical issues currently putting pressure on the dollar's status:

· The ongoing rise of China as it assumes a more prominent role in global trade and financial markets and in particular how it will manage policy and unwinding the excesses of its credit bubble in the wake of the 19th Party Congress scheduled for October2017 without upsetting its domestic economy and the global economy,

· The North Korean regimes striving to maintain credibility and untouchability as a nuclear power and how this impacts China-U.S. relations, but also how Japan deals with this threat in terms of domestic as well as foreign policy,

· The loosening of the U.S.-Europe transatlantic alliance and how Europe and the EU finds its feet as a more independent superpower — or not — in its own right after the German elections

Reference: CNBC

Read more: https://www.cnbc.com/2017/10/11/the-us-dollar-may-be-at-risk-as-the-global-reserve-currency.html