One way to understand the financial impact of policy uncertainty is to look at the implied volatility of important bilateral currency pairs. … READ MORE >
foreign exchange
Morning market minute: India’s rising capital buffer and the end of its currency peg
As India has gained prominence in the global economy, its central bank, the Reserve Bank of India, has wisely increased the level of foreign exchange holdings. … READ MORE >
Dollar ascendant? Why the dollar’s dominance will not fade.
The idea that the global economy can be organized around another currency seems out of place given the dollar’s ascendancy over the past 10 years during a period of uncertainty. … READ MORE >
CHART OF THE DAY: The strengthening dollar as the recovery takes hold
We expect the real effective exchange rate of the greenback to advance in value against a trade-weighted basket of currencies as growth and interest rate differentials drive capital flows into the U.S. this year. … READ MORE >