The dollar is as strong as ever. Isn’t it?

important currency in the world is on a roll. The dollar has climbed by around 20% over the past year against a basket of global currencies, and is at its highest level in 20 years. One euro is worth less than a dollar, and other pretenders to the dollar’s throne as the world’s reserve currency, such as the yen, yuan or even crypto, have slumped. Even as America has used its financial clout to squeeze Russia, others have rushed to the dollar-based financial system as a safe haven. This cyclical strength of the dollar dominates the global financial landscape. But look closer and technological shifts that could eventually challenge it are gathering momentum.The dollar’s run reflects several forces. Even as Europe and China face a downturn, America’s economy is proving remarkably resilient, with job growth and profits still strong. Inflation is high and the Federal Reserve is raising rates faster and higher than other big central banks. Energy crises are terms-of-trade shocks that favour energy exporters and punish the currencies of importers. Thanks to the shale revolution America became a net energy exporter in 2019 for the first time since 1952. None of these dynamics looks likely to abate soon.