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Submission: On May 01 via manual from US — Scanned from US
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Skip to contentSkip to site indexSearch & Section NavigationSection Navigation SEARCH Business SUBSCRIBE FOR $1/WEEKLog in Wednesday, May 1, 2024 Today’s Paper SUBSCRIBE FOR $1/WEEK Global Economy * A Strong U.S. Dollar * Cuba Embraces Capitalists * Europe Readies to Lower Rates * I.M.F. Outlook * Inflation in U.K. Slows Advertisement SKIP ADVERTISEMENT Supported by SKIP ADVERTISEMENT A STRONG U.S. DOLLAR WEIGHS ON THE WORLD Where Currencies Are Falling Around the World Year-to-date percentage change in the value of each country’s official currency against the U.S. dollar. Britain –1.6% South Korea –6.5% Eurozone –3.0% Japan –10.0% China –2.1% Australia –3.9% South Africa –1.9% Canada –3.4% Mexico –0.6% Brazil –5.0% Argentina –7.7% Where Currencies Are Falling Around the World Year-to-date percentage change in the value of each country’s official currency against the U.S. dollar. Canada –3.4% Britain –1.6% South Korea –6.5% Eurozone –3.0% Japan –10.0% China –2.1% Mexico –0.6% Brazil –5.0% Australia –3.9% South Africa –1.9% Argentina –7.3% Where Currencies Are Falling Around the World Year-to-date percentage change in the value of each country’s official currency against the U.S. dollar. Britain –1.6% South Korea –6.5% Canada –3.4% Eurozone –3.0% Japan –10.0% China –2.1% Mexico –0.6% Brazil –5.0% Australia –3.9% South Africa –1.9% Argentina –7.7% Source: FactSet By Karl Russell By Joe Rennison and Karl Russell Every major currency in the world has fallen against the U.S. dollar this year, an unusually broad shift with the potential for serious consequences across the global economy. Two-thirds of the roughly 150 currencies tracked by Bloomberg have weakened against the dollar, whose recent strength stems from a shift in expectations about when and by how much the Federal Reserve may cut its benchmark interest rate, which sits around a 20-year high. High Fed rates, a response to stubborn inflation, mean that American assets offer better returns than much of the world, and investors need dollars to buy them. In recent months, money has flowed into the United States with a force that’s being felt by policymakers, politicians and people from Brussels to Beijing, Toronto to Tokyo. The dollar index, a common way to gauge the general strength of the U.S. currency against a basket of its major trading partners, is hovering at levels last seen in the early 2000s (when U.S. interest rates were also similarly high). Advertisement SKIP ADVERTISEMENT The yen is at a 34-year low against the U.S. dollar. The euro and Canadian dollar are sagging. The Chinese yuan has shown notable signs of weakness, despite officials’ stated intent to stabilize it. “It has never been truer that the Fed is the world’s central bank,” said Jesse Rogers, an economist at Moody’s Analytics. 120 U.S. dollar index 110 Monthly 100 90 Stronger dollar 80 70 2000 ’05 ’10 ’15 ’20 ’24 120 U.S. dollar index 110 Monthly 100 90 Stronger dollar 80 70 2000 ’05 ’10 ’15 ’20 ’24 Source: Refinitiv By The New York Times Subscribe to The Times to read as many articles as you like. Joe Rennison writes about financial markets, a beat that ranges from chronicling the vagaries of the stock market to explaining the often-inscrutable trading decisions of Wall Street insiders. More about Joe Rennison A version of this article appears in print on May 1, 2024, Section A, Page 1 of the New York edition with the headline: As Inflation Keeps Rates High, Strong Dollar Weighs on World. Order Reprints | Today’s Paper | Subscribe * Share full article * * * Read in app Advertisement SKIP ADVERTISEMENT SITE INDEX SITE INFORMATION NAVIGATION * © 2024 The New York Times Company * NYTCo * Contact Us * Accessibility * Work with us * Advertise * T Brand Studio * Your Ad Choices * Privacy Policy * Terms of Service * Terms of Sale * Site Map * Canada * International * Help * Subscriptions Enjoy unlimited access to all of The Times. See subscription options