(Richard Harris – South China Morning Post)
The biggest financial issue of the moment is not the collapse of the Turkish lira, or Britain’s impending ignominious exit from the European Union. Nor even Donald Trump’s tariff temper tantrums, or China’s worryingly slowing growth. It is the mighty dollar.
The United States has always taken the position of former US treasury secretary John Connally, who told European finance ministers in 1971 that the dollar “is our currency, but your problem”. The Europeans at the time were worried about a weakening dollar – this time it is the reverse. According to the Bloomberg dollar index, in four short months, the US dollar has roared up to levels not far from the peak two years ago. Before then, you would have to go back 15 years to see the dollar this strong.
Trump’s economic policies, intentionally or not, have powered the dollar at a time when it usually cyclically weakens, even with the Federal Reserve increasing interest rates. Click here to read more.
- Euro Zone Limping as Global Trade War Escalates (Reuters)
- Is it ‘the Economy, Stupid’ in the EU’s Southern Neighbourhood? (Euractiv/AFP)
- Economies in Asia Regressing on Trade Sustainability (Global Trade)
- In Turkey Economic Crisis, Erdogan Is His Own Megaphone, Blaming the West (New York Times)