Where Next for the Dollar?

Introduction.

The COVID-19 pandemic has rattled financial markets, caused a protracted slowdown in the global economy, and accelerated structural trends such as digitization, automation, and aging demographics across advanced economies. As the pandemic ravaged through economies, it equally caused a broad-based decline in currencies across developing and emerging market economies. This depreciation was driven by a deteriorating global picture, lower external demand, and weaker oil prices. This was accentuated by a stronger dollar, which appreciated after its haven properties were…