Inflation Might Hold Back Dollar's Rebound
As interest rates have shot upward, the U.S. dollar's continued weakness is something of a puzzle. Fear of rising inflation is partly to blame.
As interest rates have shot upward, the U.S. dollar's continued weakness is something of a puzzle. Fear of rising inflation is partly to blame.
The accelerated pace of vaccinations and the passage of a large stimulus package have ignited hopes of a strong economic rebound in the U.S., driving Treasury yields sharply higher. At the same time, growth expectations for Europe have taken a hit as the EU's vaccination drive has stumbled and the continent appears at risk of a devastating third pandemic wave.
