A completely counter-intuitive mechanism has taken place of late: the dollar is a safe-haven currency and appreciates, even when difficulties arise in the United States, analysts report Natixis.
In the spring of 2023, all the ingredients are normally in place for the dollar to weaken
“In the spring of 2023, all the ingredients are usually in place for the dollar to weaken: Growth prospects are very weak in the United States; Risk appetite for default on US government debt due to the debt ceiling; Banking crisis affecting more and more regional banks; Consumer confidence indexes down in April.”
“However, the dollar does not depreciate but rather appreciates against all currencies: the dollar is a safe haven even when the United States is in trouble, which is paradoxical.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
