(Bloomberg) — According to Alan Ruskin, chief international strategist at Deutsche Bank AG (NYSE: DB), the rush to add liquidity to the monetary system is “the most overt sign” of financial stress and a clear negative for the dollar. DB).

After the Federal Reserve and five other central banks announced a coordinated effort on Sunday to inject liquidity into the US dollar in an effort to ease growing strains in the global financial system, Ruskin said, “The Fed adding to its balance sheet but being slow to resolve the underlying financial problem, is among the worst outcomes for the USD.”

“We are leaned to take a USD negative line, in to such an extent as the SVB issue has set off an emergency of certainty that has long haul primary repercussions for the US banking framework,” he wrote in a note to clients.

Investors reduced their bets on the Fed tightening its monetary policy this week in response to the collapse of the Silicon Valley Bank and the Credit Suisse (SIX: Group AG bailout for CSGN).

The markets are also closely watching what the Fed will say about its $8.6 trillion balance sheet, in addition to the question of whether the Fed is about to pause its interest rate hikes. Over the most recent emergency lending programs, it started expanding again after having been decreasing. Tuesday marks the beginning of a crucial two-day policy meeting with Fed Chair Jerome Powell and his colleagues.

Ruskin wrote about the SVB incident, “A shock of this nature, that has deep-seated implications for a sector’s structure, is typically not responsive to immediate fixes.” We also draw USD-negative conclusions because the problems with the structure of the banking industry are very US-specific.

The Bloomberg Dollar Spot Index lost 0.4% on Monday, a decrease of approximately 2% from its March peak.