US Dollar’s Extended Reign Delivers Stark Wake-Up Call for Markets

Bloomberg dollar index has gained more than 4% this year
US exceptionalism, geopolitical risks underpin the greenback

Verbal Intervention Is Only Central Bank Tool Vs. Dollar, Says Rabobank’s Foley

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By Ruth Carson, Naomi Tajitsu, Carter Johnson, and Tania Chen

April 21, 2024 at 8:15 PM EDT

Updated on

April 22, 2024 at 10:36 AM EDT

The world’s financial markets are encountering a force they didn’t bet on for 2024: A strong dollar is back and looks set to stay.

Having entered the year predicting the greenback would decline, investors have been forced into a rethink by a red-hot US economy and sticky inflation requiring the Federal Reserve to hold off cutting interest rates.

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