The writer is president of Queens’ College, Cambridge, and an adviser to Allianz and Gramercy
With so much going on in the global economy and financial markets, the dollar’s strong recent appreciation has attracted less attention than what would have been expected given the historical experience.
On paper, the appreciation of the currency of the world’s most resilient economic performer should help adjustments in the global economy. It helps boost the exports of weaker countries while alleviating inflationary pressures in the US by lowering the cost of imports.
But in current conditions, there are hazards in a rapid rise in the dollar for both the wellbeing of an already wobbly global economy and for unsettled financial markets.
Since the start of the year, the dollar has appreciated by some 10 per cent as measured by DXY, a widely-followed index of the currency’s global value. In what has been a notably broad move…
