Suddenly, financial markets have become highly volatile, with the escalation of Middle East hostilities and last week’s increased US inflation reading generating tension and uncertainty.

The US dollar is surging and creating dilemmas for central bankers elsewhere.

The strength of the US dollar is causing problems across the globe.Credit: Bloomberg

Oil prices, already above $US90 a barrel, could go higher and add to the challenges faced by economic managers, depending on how Israel responds to the weekend barrage of drones and missiles.

Gold prices are at record levels despite the strength of the US dollar.

The US CPI numbers, which saw the inflation rate edging up, sent shockwaves through markets.

The stock market fell almost 1.5 per cent and US bond yields spiked significantly – both 2-year and 10-year yields ended the week 16 basis points higher.

The US dollar jumped nearly 2 per cent against the basket of its major trading partners’ currencies.

The Australian dollar was down more than US1.5¢, dropping from US66.29¢ to US64.75¢ after the CPI’s release was interpreted as ruling out any near-term cut to US interest rates.

QOSHE - Why the US dollar is setting off alarm bells around the world - Stephen Bartholomeusz
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Why the US dollar is setting off alarm bells around the world

26 10
15.04.2024

Suddenly, financial markets have become highly volatile, with the escalation of Middle East hostilities and last week’s increased US inflation reading generating tension and uncertainty.

The US dollar is surging and creating dilemmas for central bankers elsewhere.

The strength of the US........

© The Sydney Morning Herald


Get it on Google Play