Global financial markets are grappling with an unanticipated phenomenon in 2024: the resurgence of a strong US dollar. Despite predictions of a weakening greenback, the dollar has regained momentum due to the robust US economy and persistent inflation, which have prompted the Federal Reserve to postpone interest rate cuts.
As the International Monetary Fund forecasts that US economic growth will outpace that of other G-7 nations, optimism about the country’s exceptional economic strength grows. This optimism is driving up both stock and bond yields, further boosting the dollar’s attractiveness in the eyes of investors.
