The US dollar’s recent rise against the major currencies is reminiscent of the dollar rally seen four years after the great financial crisis of 2008, according to the Chief Economist at the Institute of International Finance (IIF).
“We’re back to a strong Dollar world. After the global financial crisis [GFC], it took 4 years (from 2009 to 2013) before we got Dollar strength. Now it’s only taken a few months,” Brooks tweeted.
Brooks added that the global economic recovery we are seeing right now is like post-GFC, except it’s on “speed”, as authorities have delivered substantially higher stimulus in the wake of the coronavirus pandemic compared to stimulus delivered following the GFC.
The dollar index, which tracks the greenback’s value against majors, is currently hovering at 91.85, having bounced from 89.68 to 92.50 in the two weeks to March 9.
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