The dollar’s strength may be part of reason why the global Purchasing Managers Index, a crucial gauge of sentiment and growth, is languishing near a record low, if research from the Bank for International Settlements is anything to go by.
The BIS challenged the widely held idea that a stronger greenback boosts competitiveness of U.S. trade partners, boosting business with the world’s largest economy. Based on the study in its latest quarterly review, the contrary is true. The dollar has gained 3% in the past year in a move that coincided with weakening manufacturing and services around the world as the trade war heated up.
