david02360

Why the Dollar Has Rallied During Current Crisis

The reason for the dollars rise was the panic selling of foreign assets by hedge funds to meet losses in the USA and Mutual funds meeting redemptions. The world had borrowed the Japanese yen and the US dollar to buy the foreign assets. It is no coincidence that the Yen now is stronger than the dollar. The question is what next. My guess is that the dollar starts to weaken again but not to 1.6 to the Euro. although the massive borrowing that has taken place and is yet to come will have consequences which cannot be predicted