The 'Strong' Dollar

Summary

• For now, the U.S. dollar is strengthening and getting stronger as "risk-averse" monies flow into the United States and as the Fed moves ahead of other central banks.
• The Russian invasion of Ukraine has resulted in a situation that favors the U.S. dollar as the world's reserve currency.
• The monetary tightening of the Federal Reserve to fight inflation puts the U.S. in a less expansionary monetary policy than other major central banks around the world.
• It looks as if this scenario will dominate the economic world in the near future.

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Confidence in the United States?

Well, look at the current value of the U.S. dollar in the foreign exchange markets.

Thursday morning, March 3, 2022, it costs only $1.1080 to purchase one Euro.

On Wednesday evening, February

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.