Dollar’s Surprise Gain Confounds Forecasters, Risks Adding to Inflation
Index of the greenback heads for its biggest monthly gain since July.
This article is for subscribers only.
While almost all financial assets have fallen since the war broke out, the dollar stands out: It’s on track for its biggest monthly gain since July, buoyed by haven flows and diminished expectations for Fed interest-rate cuts.
The Bloomberg Dollar Spot Index’s 2% gain in March has scrambled Wall Street’s playbook for the world’s dominant reserve currency. It also risks adding to inflationary pressures around the world by making oil and food crops — denominated in dollars — even more expensive for importers.