Business | ANALYSIS May 25, 2022
As U.S. economy's exceptionalism fades, so does the dollar
A resilient U.S. economy and adverse geopolitics had provided ideal conditions for dollar outperformance, but those are now giving way.
A resilient U.S. economy and adverse geopolitics had provided ideal conditions for dollar outperformance, but those are now giving way.
Any protracted trade war with the EU would threaten to further widen the current account deficit and subsequently weaken the currency.
The Brazilian real has gained 18% this year and the Colombian peso 8%.
Money markets suggest central banks will press on with raising interest rates, even as a war on Europe's eastern flank complicates the picture for inflation and economic growth.
A gradual rise by the yen in recent weeks culminated in a dramatic surge — firing a warning shot for world markets and the global economy in 2019. Historically, outsized gains in short periods, such as the Russian default in 1998 and the global market ...