Quant Radio: The Hidden Factor Behind the Dollar Drop

In this episode of Quant Radio, we unpack a surprising twist in global markets: the US dollar fell sharply following the April 2025 tariff announcements—despite rising interest rates that should have strengthened it. Why did the textbook economics fail? We explore how shifting perceptions around US Treasuries, the "convenience yield" of dollar assets, and the deeper implications of trade policy might be signaling something more profound: a potential crack in the foundation of the dollar’s global dominance.

We break down:

- The "Dollar Disconnect" and what drove it

- Why investors turned away from US Treasuries

- The role of the convenience yield in currency strength

- Historical lessons from past reserve currency shifts

If you're wondering whether this is just market noise or the start of something much bigger, you won’t want to miss this episode.

Find the full research paper here: https://community.quantopian.com/c/community-forums/dollar-upheaval-this-time-is-different

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Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.