The US dollar’s strength this year has wreaked havoc among European and emerging market currencies, as markets continue to reward economies with higher interest rates, with little prospect of near-term relief.
On Monday (5 September), the DXY dollar index appreciated to a level not seen since 2001. Year-to-date, the index is up 14.45%, according to Morningstar data. The move was driven by broad-based weakness in other currencies such as sterling, which hit a new record low against the dollar and the euro, which traded below 99 cents to the dollar for the first time in 20 years. While a flight to safe-haven trades during the current period of high volatility and global uncertainty has been a factor behind the dollar's strength so far this year, the impact of the differing approaches of cent...
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