The Dollar Dazzles Once More

Sep. 26, 2022 3:55 AM ETInvesco DB USD Bullish ETF (UUP), USDU, UDN
Jeffrey Frankel profile picture
Jeffrey Frankel


  • Since May 2021, the dollar has risen 19% against Europe’s euro, even reaching 1-to-1 parity in recent weeks. It has appreciated 20% against Britain’s pound, and is up 28% against Japan’s yen.
  • It may seem surprising that the dollar is so strong currently, during a period of high US inflation and slowing growth.
  • Taking a look at the economic fundamentals that can explain the currency’s strength.

Finance and investment concept


The dollar is sky-high. Since May 2021, it has risen 19% against Europe’s euro, even reaching 1-to-1 parity in recent weeks. The dollar has appreciated 20% against Britain’s pound. And it is up 28% against Japan’s

This article was written by

Jeffrey Frankel profile picture
Jeffrey Frankel is Harpel Professor of Capital Formation and Growth at Harvard University’s Kennedy School of Government. He is a Research Associate of he National Bureau of Economic Research, where he is also a member of the Business Cycle Dating Committee, which officially declares recessions. Appointed to the Council of Economic Advisers by President Clinton in 1996 and subsequently confirmed by the Senate, he served until 1999. His responsibilities as Member included international economics, macroeconomics, and the environment. Before moving East, he had been professor of economics at the University of California, Berkeley, having joined the faculty in 1979. Other past appointments include the Federal Reserve Board, Institute for International Economics, International Monetary Fund, and Yale. His research interests include international finance, currencies, monetary and fiscal policy, commodity prices, regional blocs, and global environmental issues. He graduated from Swarthmore College and received his PhD from MIT. Visit Jeffrey Frankel's Weblog (

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