The Dollar Is Defying Its Reserve Currency Status

The dollar has strengthened massively when the Federal Reserve started hiking interest rates. The currencies that have seen big devaluations in this context are currencies like Pakistan, Sri Lanka, Ukraine, Egypt. And so it is countries that are frontier markets that are on the margins of the global financial system which often pegged their currencies to the US dollar. It drags these currencies up because they are pegged and makes them uncompetitive.