‘Bad situation’: Soaring U.S. dollar spreads pain worldwide
2 years, 2 months ago

‘Bad situation’: Soaring U.S. dollar spreads pain worldwide

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. An auto parts dealer in Nairobi, a seller of baby clothes in Istanbul and a wine importer in Manchester, England have the same complaint: A surging U.S. dollar makes their local currencies weaker, contributing to skyrocketing prices for everyday goods and services. “A strong dollar makes a bad situation worse in the rest of the world,’’ says Eswar Prasad, a professor of trade policy at Cornell University. Put simply: “The dollar’s appreciation is bad news for the global economy,’’ says Capital Economics’ Ariane Curtis. “Customers are complaining a lot.’’ Gyrating currencies have caused economic pain around the world many times before.

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History of this topic

Dollar rises to 2-year high after strong data dims rate-cut prospects
1 day, 21 hours ago

Dollar rises to 2-year high after strong data dims rate-cut prospects

Live Mint  

The dollar hit fresh highs against several currencies, continuing its rise after Friday’s strong U.S. jobs data further dimmed prospects for Federal Reserve interest-rate cuts this year. Continued weakness in the yuan saw Chinese officials pledge to defend the currency as prospects of U.S. trade tariffs raise concerns. “The big question for the market now is whether the Fed really …

Vivek Kaul: Trump’s tariffs won’t kill the dollar’s exorbitant privilege
3 weeks, 1 day ago

Vivek Kaul: Trump’s tariffs won’t kill the dollar’s exorbitant privilege

Live Mint  

Aldous Huxley, the English writer and philosopher, once said: “That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach." President-elect Donald Trump has been warning of imposing tariffs on countries with which the US has a trade deficit—that is, countries from which the US imports …

Dollar firms as US rates outlook dominates
3 weeks, 1 day ago

Dollar firms as US rates outlook dominates

Live Mint  

By Rae Wee SINGORE, - The dollar was on the front foot on Tuesday as the prospect of higher-for-longer U.S. interest rates remained top of investors' minds, leaving other currencies struggling near milestone lows. The Bank of Japan last week kept rates on hold and stayed vague on when it could next raise rates, an outcome which was in stark …

Trump vows to defend U.S. dollar hegemony, but is it under threat?
1 month, 1 week ago

Trump vows to defend U.S. dollar hegemony, but is it under threat?

Raw Story  

U.S. President-elect Donald Trump has threatened retaliation against governments that challenge the US dollar, vowing "100 percent tariffs" on countries that undercut the US currency. "The US dollar remains as dominant as ever as a global funding currency, a payment currency for international transactions, and a reserve currency," said Eswar Prasad, a professor of international trade policy at Cornell University …

“Find another sucker”: Trump threatens 100% tariff on countries that resist U.S. dollar
1 month, 1 week ago

“Find another sucker”: Trump threatens 100% tariff on countries that resist U.S. dollar

Salon  

President-elect Donald Trump's tariff threats continued on Saturday with a pledge to enact 100% tariffs on a bloc of nine countries if they shift away from the U.S. dollar in international trade. “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar,” Trump …

US Dollar hits one-year high amid Donald Trump's economic policies
2 months ago

US Dollar hits one-year high amid Donald Trump's economic policies

Hindustan Times  

The U.S. dollar revisited a one-year high against major peers on Thursday, as a fourth straight winning session from momentum sparked by Donald Trump's election victory eclipsed a rise in bets for Federal Reserve easing. On Thursday, the U.S. dollar hit a one-year high as Trump's election momentum continued, while bitcoin soared to a record $93,480. Elsewhere, the Australian dollar …

Dollar hits one-year high on Trump trades
Trending News
2 months ago

Dollar hits one-year high on Trump trades

Live Mint  

* Bitcoin surges to new all-time peak * Yen drops below 155 per dollar * Euro falls to one-year low * Dollar index hits highest since November 2023 By Chibuike Oguh NEW YORK, - The U.S. dollar advanced to one-year high against major currencies on Wednesday powered by so-called Trump trades and after U.S. inflation for October came in as …

US dollar and bitcoin advance spurred by Trump tariff expectations
2 months ago

US dollar and bitcoin advance spurred by Trump tariff expectations

Live Mint  

* Dollar index rises to 6-1/2-month high * Bitcoin hits record high on Trump tariff promise * Euro sinks to lowest since November 2023 By Chibuike Oguh and Harry Robertson NEW YORK/LONDON, - The U.S. dollar rose to a 6-1/2-month high against major peers on Tuesday, while bitcoin pared gains after earlier hitting a record high amid expectations of inflationary …

US dollar and bitcoin advance spurred by Trump tariff expectations
2 months ago

US dollar and bitcoin advance spurred by Trump tariff expectations

Live Mint  

By Chibuike Oguh and Harry Robertson NEW YORK/LONDON -The U.S. dollar rose to a 6-1/2-month high against major peers on Tuesday, while bitcoin pared gains after earlier hitting a record high amid expectations of inflationary import tariffs from Republican President-elect Donald Trump Bitcoin gained 1.88% to $89,683.00, slightly below a new all-time peak of $89,982. "It's still an extension of …

America’s strengthening dollar will rattle the rest of the world
2 months ago

America’s strengthening dollar will rattle the rest of the world

Live Mint  

In 1971 John Connally, then the American treasury secretary, told his European counterparts that the dollar was “our currency, but your problem". Over the following half-century the global economy has transformed, but Connally’s adage still rings true: even though the value of the dollar remains largely set by domestic developments in America, its swings almost always send ripples across the …

Why inflation could rise and interest rates remain elevated under a Trump presidency
2 months, 1 week ago

Why inflation could rise and interest rates remain elevated under a Trump presidency

CNN  

London CNN — Inflation is likely to rise in the United States and around the world if newly elected US President Donald Trump follows through on his campaign promises to cut taxes, crack down on immigration and hike tariffs on all imported goods. Trump’s proposed economic policies — including deporting immigrants, across-the-board tariffs and increased political influence on the Fed …

Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever
7 months, 1 week ago

Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever

Hindustan Times  

By Jamie McGeever Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever ORLANDO, Florida, - After two decades of the dollar's share of global foreign exchange reserves gradually eroding to less than 60%, economic, financial and geopolitical stars are aligning to halt that trend in the next few years and possibly even reverse it. But according to the OMFIF's 'Global …

Oh, the places you’ll go—with a strong dollar in tow
7 months, 2 weeks ago

Oh, the places you’ll go—with a strong dollar in tow

Live Mint  

With the dollar on the rise, American tourists can outspend the locals in some of the world’s top travel spots. Almost 800,000 Americans traveled to Japan during the first four months of the year, beating last year’s record, according to the Japan National Tourism Organization. The stronger dollar meant he was able to explore Buddhist temples and Shinto shrines to …

The real reason behind fluctuations in global foreign exchange market
8 months, 3 weeks ago

The real reason behind fluctuations in global foreign exchange market

China Daily  

In recent days, the currencies of emerging market countries have caught everyone's attention because of a weak streak, with the Indonesian rupiah falling to a four-year low, the Malaysian ringgit tumbling to its lowest exchange rate since 1998, and the Indian rupee dropping to a record low. According to the IMF, if the US Federal Reserve keeps its benchmark interest …

Global debt surges to record high as borrowing costs bite
10 months, 3 weeks ago

Global debt surges to record high as borrowing costs bite

The Telegraph  

Global debt has surged to a record high of $313 trillion, as higher interest rates drive up borrowing costs for companies and governments worldwide. Jan Friederich at Fitch Ratings said higher borrowing costs mark “a quite substantial change from the environment of. Speaking at the launch of the IIF’s Global Debt Monitor he said that “average interest expenditure relative to …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year, 1 month ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

Dollar’s Resurgence Is a Headache for the Rest of the World
1 year, 3 months ago

Dollar’s Resurgence Is a Headache for the Rest of the World

Live Mint  

The dollar bounced back with a vengeance in the third quarter, threatening global central bankers’ tricky task of bringing down inflation while protecting fragile economic growth. “The markets have consistently tried to price in rosy scenarios which were associated with a weaker dollar and they continue to be surprised that the reality isn’t quite as rosy,” said Maurice Obstfeld, former …

The U.S. dollar conquered the world. Is it at risk of losing its top spot?
1 year, 7 months ago

The U.S. dollar conquered the world. Is it at risk of losing its top spot?

NPR  

The U.S. dollar conquered the world. Economists call it the "global reserve currency," a fancy title the dollar got about 80 years ago that has brought some pretty serious perks to the U.S. economy. The Bretton Woods gathering in 1944 cemented the U.S. dollar in as the world's reserve currency, replacing the British Pound Sterling YouTube So the British pushed …

De-Dollarisation Trend: Why It Matters And What Investors Should Know?
1 year, 8 months ago

De-Dollarisation Trend: Why It Matters And What Investors Should Know?

News 18  

Argentina on Wednesday April 26, announced that it will pay in yuan for Chinese imports instead of the US dollar. As the world debates the merits and demerits of de-dollarisation, let us look at what the term means, and its possible impacts on the world economy. De-dollarisation basically means reducing the dependence on the US dollar as a medium of …

Are we seeing a de-throning of the dollar?
1 year, 8 months ago

Are we seeing a de-throning of the dollar?

Hindustan Times  

Since early 2023, the international currency discussion has gained enormous traction. Further, in January 2023, several countries in South East Asia also deliberated over how to circumvent the US currency dominance; meanwhile, the dollar continues to gain strength. However, since the US dollar exchange rates have reached the highest in 20 years amongst the kitty of currencies, this rapid rise …

Why de-dollarization is inevitable
1 year, 8 months ago

Why de-dollarization is inevitable

China Daily  

In 1023, a thousand years ago, the Song Dynasty changed the history of money by introducing paper money, jiaozi, as legal tender and a means of exchange. A full millennium later, China is again set to transform the history of money, first, by spearheading the transition from paper money to the era of digital currency, leading the world in mobile …

Outlook 2023: Here’s why rupee will depreciate against dollar in H1
2 years ago

Outlook 2023: Here’s why rupee will depreciate against dollar in H1

Live Mint  

Indian rupee emerged as Asia’s worst performing currency in 2022 depreciating around 11.5% against the US Dollar on strength in the greenback and capital outflows by foreign investors. We expect Rupee to depreciate against the US Dollar in H1 2023 as the global inflation and economic concerns continue to dent risk sentiments. Most global institutions such as the IMF and …

Indranil Banerjie | Dollar’s rise sets off crisis of collapsing currencies
2 years, 1 month ago

Indranil Banerjie | Dollar’s rise sets off crisis of collapsing currencies

Deccan Chronicle  

A currency storm is wreaking havoc across the globe. Even the mighty Chinese currency has been battered, falling 15 per cent this year to 7.25 yuan per US dollar by end October, which is its lowest rate since January 2008, the time of the global financial crisis. Virtually all Asian currencies have been hit: India by 10.9 per cent, Bangladesh …

‘Bad situation’: Soaring US dollar spreads pain worldwide
2 years, 2 months ago

‘Bad situation’: Soaring US dollar spreads pain worldwide

Associated Press  

The cost of living in Cairo has soared so much that security guard Mustafa Gamal had to send his wife and year-old daughter to live with his parents in a village 70 miles south of the Egyptian capital to save money. “A strong dollar makes a bad situation worse in the rest of the world,’’ says Eswar Prasad, a professor …

‘Bad situation’: Soaring U.S. dollar spreads pain worldwide
2 years, 2 months ago

‘Bad situation’: Soaring U.S. dollar spreads pain worldwide

LA Times  

Workers wait for customers outside a car parts shop in Kenya’s capital, Nairobi, Kenya. “A strong dollar makes a bad situation worse in the rest of the world,’’ says Eswar Prasad, a professor of trade policy at Cornell University. The pound recently flirted with dollar parity after Britain’s new prime minister, Liz Truss, announced huge tax cuts that roiled financial …

Strong Dollar Attracting American Tourists To Low-cost Trips in UK Despite Inflation
2 years, 3 months ago

Strong Dollar Attracting American Tourists To Low-cost Trips in UK Despite Inflation

News 18  

The United Kingdom is in a tough spot. Although the near 40-year high UK inflation has pushed prices high, the weakening pound covers up for a big chunk of the cost jump for the dollar spender. More tourists from the US are also a good sign because, on average, they spend three times what an average UK holidaymaker does on …

EXPLAINED: How the Strong US Dollar Can Affect Everyone
2 years, 3 months ago

EXPLAINED: How the Strong US Dollar Can Affect Everyone

News 18  

The buck isn’t stopping. Here’s a look at what’s driving the U.S. dollar higher and what it can mean for investors and households: WHAT DOES IT MEAN TO SAY THE DOLLAR IS STRONGER? The U.S. Dollar index, which measures the dollar against the euro, yen and other major currencies, has climbed more than 14% this year. Partly because of that …

EXPLAINER: How the strong U.S. dollar can affect everyone
2 years, 3 months ago

EXPLAINER: How the strong U.S. dollar can affect everyone

Associated Press  

NEW YORK — The buck isn’t stopping. Here’s a look at what’s driving the U.S. dollar higher and what it can mean for investors and households: WHAT DOES IT MEAN TO SAY THE DOLLAR IS STRONGER? That’s about 30% more and one of the biggest moves the U.S. dollar has made against another currency. The U.S. Dollar index, which measures …

Dollar’s rise spells trouble for global economies
2 years, 3 months ago

Dollar’s rise spells trouble for global economies

Live Mint  

The U.S. dollar is experiencing a once-in-a-generation rally. “It’s not going to be contained.” A stronger dollar makes the debts that emerging-market governments and companies have taken out in U.S. dollars more expensive to pay back. “Whether the ECB turns more hawkish, whether there’s some improvement on the economic outlook, whatever happens, it’s generally offset by further dollar strength,” he …

What a strong dollar means for the rest of the world
2 years, 5 months ago

What a strong dollar means for the rest of the world

Live Mint  

The U.S. dollar is stronger than it has been in decades and the effects of its rapid rise are reverberating across the globe. While currencies in emerging markets typically feel pressure when investors flock to a strong dollar, those of developed countries also have fallen. Outflows excluding China have been on par with previous macroeconomic shocks, according to IIF chief …

With US dollar nearly equal to euro, impact is being felt
2 years, 6 months ago

With US dollar nearly equal to euro, impact is being felt

Associated Press  

WASHINGTON — The U.S. dollar has been surging so much that it’s nearly equal in value to the euro for the first time in 20 years. Also contributing to the currency’s appeal, notes Rubeela Farooqi of High Frequency Economics, is that despite concern about a potential recession in the United States, “the U.S. economy is on firmer footing compared to …

Dollar hegemony could spark a new crisis
3 years, 7 months ago

Dollar hegemony could spark a new crisis

China Daily  

MA XUEJING/CHINA DAILY Editor's Note: The United States government has implemented huge economic stimulus measures. With fears of stagnation in the US rising, especially after lower than expected job creation and consumption growth in April, the Federal Reserve has proposed a new monetary policy, reverting interest rates to zero and resorting to unlimited quantitative easing, as it had done when …

Dollar hegemony could spark a new crisis
3 years, 7 months ago

Dollar hegemony could spark a new crisis

China Daily  

MA XUEJING/CHINA DAILY Editor's Note: The United States government has implemented huge economic stimulus measures. With fears of stagnation in the US rising, especially after lower than expected job creation and consumption growth in April, the Federal Reserve has proposed a new monetary policy, reverting interest rates to zero and resorting to unlimited quantitative easing, as it had done when …

Dollar hits rough patch after strong start to 2021
3 years, 9 months ago

Dollar hits rough patch after strong start to 2021

Live Mint  

The dollar has slipped this month as the Federal Reserve stuck to its message that it won’t raise interest rates soon despite forecasts that the U.S. economy will recover faster than its peers. The dollar has tended to fall against other currencies in April over the past 10 years, Mr. Brennan said, as a result of disappointing economic data such …

Dollar’s slump propels global peers toward multi-year peaks
4 years, 1 month ago

Dollar’s slump propels global peers toward multi-year peaks

Live Mint  

The dollar’s protracted decline is spurring Group-of-10 peers toward multi-year highs. China’s economic rebound and bets on a successful roll-out of vaccines are bringing key levels into play for currencies from the euro to the Aussie and the Canadian dollar. “The improving outlook for global growth, combined with strong signals from the Fed that it will maintain loose monetary policy …

The dollar is weak. Investors bet it will slide even more
4 years, 1 month ago

The dollar is weak. Investors bet it will slide even more

Live Mint  

The dollar hit its lowest levels against a basket of currencies in more than two years this week—and investors think it’ll fall further. A commentary from market strategists at Citigroup recently predicted the dollar could see an additional 20% drop in 2021, as foreign investors move to protect themselves from currency fluctuations in their existing U.S. holdings. “The dollar appears …

World Stocks Hit Record High, Dollar Stays Weak Amid Biden-spurred Hopes of Fiscal Stimulus
4 years, 2 months ago

World Stocks Hit Record High, Dollar Stays Weak Amid Biden-spurred Hopes of Fiscal Stimulus

News 18  

World stocks hit a record high on Monday and the dollar stayed weak as expectations of better global trade ties and more monetary stimulus under U.S. President-elect Joe Biden supported risk appetite. Markets started to trade on the prospect of a Biden presidency and a Republican-controlled U.S. Senate last week, but the Democratic candidate’s projected victory on Saturday gave more …

Is US dollar’s reign as world’s reserve currency is under threat?
4 years, 5 months ago

Is US dollar’s reign as world’s reserve currency is under threat?

Live Mint  

The dollar’s rise to become the dominant currency started after World War I, but it was only definitively confirmed by the Bretton Woods accord reached in 1944. Wider use of SDRs as a reserve currency would reduce developing economies’ need for foreign exchange reserves as “self-insurance.” SDRs became a go-to reserve asset when the dollar fell 34% vs. the yen …

Dollar scales record levels at 3-year peak; global rampage spurs FX interventions, speculation of big G7 move
4 years, 9 months ago

Dollar scales record levels at 3-year peak; global rampage spurs FX interventions, speculation of big G7 move

Firstpost  

The dollar’s brutal ascent—up 6.5 percent this month against a basket of peers—has sent almost every other currency reeling. “If there is one currency causing problems right now and aggravating the sell-off in global asset markets, it is the US dollar,” ING Bank told clients. “The US has brought in almost all its instruments, the one that hasn’t been done …

Coronavirus fears have pushed the US dollar to a three-year high
4 years, 10 months ago

Coronavirus fears have pushed the US dollar to a three-year high

CNN  

New York CNN Business — The US dollar index reached a three-year high as investors worried about the global coronavirus outbreak are moving their money into the safe-haven greenback. Investments considered safe in times of market turmoil have been rallying since the outbreak became Wall Street’s number one worry in January. The ICE US dollar index finished the week at …

Trump’s unrelenting global trade wars have sealed our financial fate
5 years, 5 months ago

Trump’s unrelenting global trade wars have sealed our financial fate

The Independent  

I keep a 1 yuan coin on my keyboard. The Chinese authorities’ response has been to allow the renminbi to drift lower – “manipulating” it, in US terms. Indeed, the yield on long-dated German government bonds has turned negative, meaning that you, the “depositor”, will actually get marginally less back in cash terms in three decades than you have lent …

US-China trade war intensifies: Donald Trump administration designates Beijing a currency manipulator
5 years, 5 months ago

US-China trade war intensifies: Donald Trump administration designates Beijing a currency manipulator

Firstpost  

The Trump administration’s dramatic move against China hastened the risk aversion seen in global markets this week Tokyo: Global stocks extended their already substantial losses and the offshore yuan hit an all-time low on Tuesday after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war. “Following the latest development in the US-China trade war, …

How Trump could kick off a currency war
5 years, 6 months ago

How Trump could kick off a currency war

CNN  

New York CNN Business — It’s no secret that President Donald Trump wants to weaken the US dollar to juice the American economy. Last month, Trump complained that the European Central Bank’s easy money policies caused the euro to tumble, “making it unfairly easier for them to compete against the USA.” Any attempt by the Treasury to intervene unilaterally would …

Here’s another sign the US dollar is too strong: Burgers
5 years, 6 months ago

Here’s another sign the US dollar is too strong: Burgers

CNN  

New York CNN Business — Some politicians and market participants believe the US dollar is too strong compared to its rivals. The Economist’s Big Mac Index – a lighthearted way to make the value of currencies more tangible – showed that nearly all currencies in the index are undervalued against the dollar. The Big Mac Index, released Wednesday, is rooted …

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