Strategy Note / Global

US Dollar: Recent weakness, drivers up and down from here (in one chart)

  • Spot rate down 9% from March peak (Covid-19 panic), but US$ still above 10-year averages for spot (6%) and REER (9%)
  • Weak (or at least stable) US$ a pre-requisite for non-Technology EM-FM equities (eg Brazil, SA performance recently)
  • Chart shows US$ history and drivers up (panic, v-shaped recovery) or down (EU growth, reserve currency rivals) from here

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