The spotlight is on dollaror rather, on Federal Reserve American. The Fed’s high rates, a response to runaway inflation in the US, mean American assets offer better returns than those in much of the world. The result? Investors need dollars to buy them, and money is flowing into the United States with a force felt by every country in the world.
We are in the presence of a sort of big global currency game. On the one hand, in fact, we have a dollar fueled by the levers of the Fed, while on the other we find a series of international currencies who pay the consequences of such a thing modus operandi. In 2024, he pointed out the New York Timesall the main currencies in the world have depreciated against the dollar, giving rise to an unusually large and potentially dangerous phenomenon for the planet’s economy.
Two-thirds of the 150 currencies tracked by Bloombergyes. I am weakened on the greenback, whose strength, essentially, derives from a change in expectations on when (and to what extent) the aforementioned Fed could cut its reference rate (to the highest levels for at least twenty years). “It has never been more true that the Fed is the central bank of the world,” said Jesse Rogers, an economist at Moody’s Analytics. […]
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