Why the dollar’s ascendancy won’t last
All it takes is a slowdown in America, lower inflation and a Fed pivot
THERE IS SOMETHING slightly tedious about the dollar’s rude health. It seems as inevitable as lying politicians and stormy winters. The DXY, a gauge of the dollar against half a dozen other rich-world currencies, is up by almost 7% since the start of the year. The broad dollar index, which measures the dollar against 26 of America’s trading partners, has also risen markedly since June. It is difficult to imagine what might check its rise. But it is still worth trying. You may find that the case for a reversal of the dollar in 2022 is more plausible than you had thought.
This article appeared in the Finance & economics section of the print edition under the headline “Top dollar”
Finance & economics December 11th 2021
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