The Safe-Haven Dollar Is Rising

The Safe-Haven Dollar Is Rising

The Dollar is rising to new highs and equities are being sold off heavily.

The inverse correlation between the dollar and stocks is in play. U.S stock market is dropping but the dollar against other currencies is higher.

The emerging markets are the most vulnerable because their local currencies are collapsing. The dollar index DXY crossed yesterday the historic level at 100.0. Investors are escaping emerging markets in record numbers and they prefer to hold the safe-haven dollar.

Two emergency interest-rate cuts this month by the Federal Reserve did nothing to weaken the dollar. EURUSD declined to 1.0800 and GBPUSD was down 674 pips in one day reaching the lowest point against USD since 1985. The selling pressure might continue today as the market is driven by fears and panic selling.

The Safe-Haven Dollar Is Rising
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