Following a decade-long rise in the dollar’s value, declarations of its end as the world’s reserve currency are in vogue. With the days of zero interest rates giving way to higher rates, elevated inflation and rapidly changing rules of trade, is there anything to this talk? Our answer is ... READ MORE >
U.S. dollar
Why the dollar remains the world’s reserve currency, and will stay that way
Recent talk that China, India and Russia are settling purchases of oil in non-dollar denominations has generated speculation that the dollar’s days as the world’s reserve currency are ending. This is nothing new. There were similar discussion during the financial crisis 15 years ago and, ... READ MORE >
As turmoil grows, foreign banks and investors flock to the dollar
Intensifying financial stress and increased volatility have shaken global markets and stimulated a move of capital into the safety of the American dollar. Whether it is the purchase of short-term Treasury notes, the depositing of cash in U.S. financial institutions or a greater use of the Federal ... READ MORE >
As the U.S. dollar surges, the potential for a currency crisis grows
The liquidity crunch driving the withdrawal of bond purchases by global central banks is creating the conditions of a classic policy quandary that is stoking international financial instability. The challenge in balancing growth, inflation and financial stability is now being exacerbated by ... READ MORE >
Japan intervenes in the currency market
With the yen in freefall, Japan on Thursday took the unusual step of intervening in currency markets to prop up the yen's value. For the first time in 24 years, the government began selling dollars to buy yen. The move came soon after the Bank of Japan held its policy rate at sub-zero levels, bucking ... READ MORE >
The return of king dollar: The greenback in an era of inflation
The return of inflation, interest rate differentials and a quickly changing geopolitical landscape are the primary catalysts behind the recent surge in the value of the American dollar. With the Federal Reserve set to boost the policy rate by at the very least 200 basis points over the remainder of ... READ MORE >
Why the U.S. dollar is strengthening
Policy by the central bank, interest rate differentials and a risk haven move into U.S. dollar-denominated assets are driving up the dollar against major trading currencies. This is a welcome development as the Federal Reserve continues to prepare investors for a significant increase in the federal ... READ MORE >
CHART OF THE DAY: Foreign investment in U.S. securities rebounds
It has been six months since the Biden administration and the new Congress took charge of foreign and domestic policies, and foreign investment flows suggest a vote of confidence in the economy and its institutions. The latest data from the Treasury International Capital (TIC) System indicates a 65% ... READ MORE >