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Weekly Market Update

US Dollar and International Equities

Head of North American Investment Strategy & Research

Insight of the Week

  • The US Dollar’s strength is an amalgamation of 3 main interrelationships.
  • First, the US Dollar is viewed as a safe haven asset and garners attention during market volatility and economic concern.
  • Secondly, relative interest rate differentials bring appeal to the higher yielding currency.
  • Thirdly, superior growth brings more investment and demand to a particular currency, resulting in its appreciation.
  • At any one time, there could be confliction impacts from these effects, and only the strongest forces at that time will prevail.

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