How America’s blockbuster stimulus affects the dollar
Stronger growth and higher rates should mean a stronger greenback
HERE IS THE tale of the dollar so far in 2021. It came into the year on a declining trend. A lot of people were mildly chary of its prospects. The gist was that people had bought a lot of dollars last year. They might wish to sell some. There has since been a dramatic upward revision to forecasts for GDP growth in America. This has been mirrored in sharply rising Treasury yields. Growth upgrades; higher interest rates; both are good for currencies. The result has been a stronger dollar.
This article appeared in the Finance & economics section of the print edition under the headline “Winter’s tale”
Finance & economics March 13th 2021
- The world’s consumers are sitting on piles of cash. Will they spend it?
- Oil markets prepare for lofty prices and restrained supply
- How America’s blockbuster stimulus affects the dollar
- China’s budget forecast is more informative than its growth target
- The many guises of vaccine nationalism
- Warmer Arctic waters could turn the tides in LNG markets
- China’s government is cracking down on fintech. What does it want?
- The perils of asking central banks to do too much
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