PRESS ROOM
US dollar regaining lost ground
Friday 12th March '21
The US dollar index, a measure of the greenback’s value relative to a basket of world currencies, has shown signs of recovery following months of weakness since the second half of last year. The dollar typically experiences relatively long cycles of strength and weakness. This is related closely with US twin deficits, i.e. when the current account and budget deficits are widening, the currency experiences weakness. The recent uptick in the currency’s value is likely to be a translation of the increase in US Treasury yields.