Throwing the Golden Baby Outwith the Covid Bath Water

As a general rule, the most successful man in life is the man who has the best information

by Richard (Rick) Mills
Ahead of the Herd

The dollar is the most important unit of account for international trade, the main medium of exchange for settling international transactions, and the store of value for central banks. The Federal Reserve is the lender of last resort, as in the 2008–09 financial crisis, and is the most common currency for overseas borrowing by governments and businesses.

Investors want to own dollars when the proverbial poo hits the fan, or a wrench is thrown into the machinery of the global economy – pick your metaphor they all fit the coronavirus crisis.

On Monday the US dollar index, DXY, soared as investors flocked to safety amid a global stock market rout resulting from rising covid-19 cases, especially in the UK and Europe.

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