The dollar reaches a new high and benefits from the world’s major currencies

It seems that a prolonged crisis is deepening in the world, and as it has throughout the past decades, it is the US economy, especially the dollar, that usually benefits the most. Just yesterday it reached a new high and led currencies such as the British pound and the yuan to reach their lowest levels in nearly 10 years, highlighting the negative outlook for the global economy.

According to Bloomberg data, among the hardest hit against the currency Currency London down 6.34%. Among the top positions, the Swedish Krona also stands out, with a decrease of 5.01%, the Norwegian Krone (-5%), the Chilean Peso (-4.82%), the New Zealand dollar (-4.17%), the Euro (-3.89%), the Danish Krone (- 3.88%), Australian Dollars (-3.55%), Canadian Dollars (-2.95%), Swiss Franc (-2, 68%), South Korean Won (-2.59). %), the Mexican peso (-2.17%), the Brazilian real (-1.76%) and the Colombian peso (-0.94%), among others.

The outlook is not encouraging, because the tightening of monetary policy by the central banks of the United States, the United Kingdom and China has prompted investors and venture capital to resort, of course, to the dollar, back to a situation very similar to the one I experienced. during the crises of 2008.

In England, sharp market volatility is a response to new fiscal measures including sweeping tax cuts that investors fear will boost inflation and increase lending at a time when interest rates are rising rapidly. benefit.

“We’re not a million miles from the bottom, but we’re going to have a lot of volatility in both directions in the next few days and maybe the next few weeks. It’s not really going to get any better, except for anything else,” said Kate Jukes, senior currency strategist at Societe Generale. Until the dollar recovers, but also so that people start to gain more confidence in the management of the British economy.”

In China, the bank said it would impose a Reservation 20% risk on forward sales of foreign currency by banks. Since August, he has tried to limit the yuan’s losses through its daily benchmark rate and demanded that lenders set aside more foreign currency as reserves.

In the case of the North American country, Boston Fed President Susan Collins said additional tightening was needed to control persistently high inflation, and warned that the process would require job losses.

The circle was closed by Christine Lagarde, President of the European Central Bank, who stated yesterday that it will continue to increase borrowing costs, even when economic activity is expected to “slow significantly”.

It warned that European governments’ support for households and businesses was too broad, suggesting that it risks interfering with the European Central Bank’s efforts to steer price hikes toward its 2% target from the current level.