In comparison to this, the British Pound and the Australian and New Zealand dollars are all nearing lows not seen in over a decade.
While the U.S. stock market has been bludgeoned by panic over the coronavirus pandemic, losing all of the gains made during Trump’s presidency, the U.S. has one thing going for it: the dollar is making gains unseen for nearly three decades.
“The dollar extended its gains on Thursday, putting it on its biggest rising run since 1992 against its peers, as demand for funding stayed high despite the recent burst of liquidity injection operations undertaken by central banks around the world,” CNBC reports. “Against its rivals, the dollar firmed 0.75% to 101.92, its highest level since March 2017. It has gained more than 7% in the past nine trading sessions. On an eight-day rolling basis, it is on its biggest rise since September 1992.”
The dollar’s strong performance, AxiCorp Global Chief Markets Strategist Stephen Innes notes, comes at the expense of the global markets. “The strong US dollar is slamming global capital markets like a sledgehammer today,” Innes wrote, as reported by CNN Business.
What’s fueling the dollar’s success? Credit Agriocole currency strategist Manuel Oliveri says it’s the failure of central banks to act aggressively enough. “Central banks are stepping up their liquidity actions but it is not enough to make sure the dollar scarcity disappear and as a result the dollar continues to be the favoured currency across the board,” said Oliveri, as reported by CNBC.