2min chapter

Odd Lots cover image

Hyun Song Shin Explains Why This Dollar Shock Is So Unique

Odd Lots

CHAPTER

Why Has the Dollar Been Going Up?

The dollar has this unusual position in the global financial system where it's a safe haven currency. So when you get worries about economic growth slowing, because of the higher dollar, you tend to get more flows into dollar assets and then the dollar goes up even more. The relative pace of monetary tightening has certainly played a role. But I think there is also a very important real economy effect here as well.

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