Dollar Strength Cycle
Periods when the US dollar strengthens broadly: pressure on commodities, emerging-market currencies and non-US earnings.
Dated events
- · Lehman Brothers files for Chapter 11 bankruptcy
A major US bank failed during the financial crisis, triggering panic around the world. Frightened investors pulled money out of emerging markets and bought dollars as a safe haven, causing the dollar to spike higher while prices of oil, metals, and stocks in developing countries fell sharply. - · WHO declares COVID-19 a pandemic and a global scramble for dollars follows
In the week and a half after the declaration the dollar rose 7% against the major currencies with standing Fed swap lines and 12% against nine other countries' currencies, as lenders and borrowers hoarded dollars. - · Fed raises rates by another 0.75 point and the dollar index hits a 20-year high
The dollar index touched 111.63, its highest in two decades, and the euro fell to a 20-year low of $0.9810 as the Fed signalled more large increases. - · Donald Trump wins the U.S. presidential election and the dollar jumps
By 09:00 GMT the dollar index was up 1.4% after touching a four-month high; the euro fell as much as 1.9% and the dollar jumped more than 3% against the Mexican peso.
Assets named in this scenario · 41
Argentine Peso (ARS)ASMLAustralian Dollar (AUD)Brazilian Real (BRL)British Pound (GBP)Canadian Dollar (CAD)Chilean Peso (CLP)Chinese Yuan (CNY)Czech Koruna (CZK)Danish Krone (DKK)Euro (EUR)Gold · Gold FuturesHong Kong Dollar (HKD)Hungarian Forint (HUF)Indian Rupee (INR)Indonesian Rupiah (IDR)iShares MSCI ACWI ETFIsraeli Shekel (ILS)Japanese Yen (JPY)LVMH Moët Hennessy - Louis Vuitton, Société EuropéenneMalaysian Ringgit (MYR)Mexican Peso (MXN)New Zealand Dollar (NZD)Norwegian Krone (NOK)Philippine Peso (PHP)Polish Zloty (PLN)Romanian Leu (RON)Russian Ruble (RUB)SAPSaudi Riyal (SAR)Singapore Dollar (SGD)Sony GroupSouth African Rand (ZAR)South Korean Won (KRW)SPDR S&P 500 ETF TrustSwedish Krona (SEK)Swiss Franc (CHF)Thai Baht (THB)Toyota MotorTurkish Lira (TRY)UAE Dirham (AED)
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