Why the dollar’s ascendancy won’t last

THERE IS SOMETHINGDXYSP slightly tedious about the dollar’s rude health. It seems as inevitable as lying politicians and stormy winters. The , a gauge of the dollar against half a dozen other rich-world currencies, is up by almost 7% since the start of the year. The broad dollar index, which measures the dollar against 26 of America’s trading partners, has also risen markedly since June. It is difficult to imagine what might check its rise. But it is still worth trying. You may find that the case for a reversal of the dollar in 2022 is more plausible than you had thought.The dollar’s current strength is tied to American exceptionalism of a sort. The & 500 index of leading shares consistently outperforms the stockmarkets of other countries. America’s economy has proved to be a reliable source of growth. It has emerged from the pandemic more strongly than just about anywhere else. After a brief loss of energy in the summer it is now showing renewed vigour.