November 25, 2016
THERE'S ONLY ONE SAFE HAVEN:
Runaway dollar sends shiver through world markets (Sujata Rao and Patrick Graham, 11/25/16, Reuters)
The U.S. dollar's renewed surge and signs that it will build on current 14-year highs are leaving a trail of destruction through world currency markets and forcing policymakers to rethink mechanisms to deal with the fallout.Currencies from the Indian rupee to the offshore version of the Chinese yuan have hit record lows to the greenback this week, and if history is a guide, another year or two of pain lies ahead for them.Judging from the U.S. Federal Reserve's trade-weighted index, past dollar strength episodes have tended to last about seven years. So the current rally, dating from mid-2011 and averaging 4 percent annually, can be expected to run until 2018.
Think the rest of the developed world can fix its demographic implosion in two years?
Posted by Orrin Judd at November 25, 2016 7:09 AM