Why the dollar is still strong

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Despite the ongoing wars in Ukraine and Gaza, Fitch’s credit rating downgrade of the US, the lowering of the US credit rating outlook to negative by Moody’s and a growing US debt burden, the US dollar has regained its strength.

Despite prospective rate cuts this year, US interest rates are still at the highs after the Federal Reserve’s unprecedented monetary tightening. After declining to its recent low of 100.62 in December last year, the US dollar index is now at 104.29.Despite prospective rate cuts this year, US interest rates are still at the highs after the Federal Reserve’s unprecedented monetary tightening.Nonfarm payrolls increased by 303,000 in March while the unemployment rate dropped to 3.8 percent.

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