Commentary
Why are market participants scared of a strong dollar? Because for years there was a massive carry trade against the U.S. dollar predicated on a bet that constantly printing currency and cutting rates would never create inflation.
Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken on June 16, 2022. Florence Lo/Reuters
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat” (2015), and “Life in the Financial Markets.”
