The world’s financial markets are encountering a force they didn’t bet on for 2024: A strong dollar is back and looks set to stay.
Having entered the year predicting the greenback would decline, investors have been forced into a rethink by a red-hot U.S. economy and sticky inflation requiring the Federal Reserve to hold off cutting interest rates.
With the International Monetary Fund predicting output stateside will grow at twice the clip of its Group-of-Seven peers, talk of "U.S. exceptionalism” is rife and supporting stocks and bond yields, adding to the dollar’s appeal.