For the past few years the “strong dollar” has been so central to the global financial story – enabling ever-lower interest rates and ever-higher financial asset prices pretty much everywhere – that it’s easy to forget how illusory “strength” is for fiat currencies.
Since mid-2017 that illusion has been evaporating, as the dollar falls (both against other fiat currencies and assets like oil, bitcoin, tech stocks and gold) and interest rates rise.
And this week the US seemed to welcome these trends.
