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- The U.S. Dollar’s Amazing Strength in the Deepening Financial Crisis
The U.S. Dollar’s Amazing Strength in the Deepening Financial Crisis
Economic Research Department Chief economist Yasuhide Yajima
Amid the deepening global financial crisis triggered by the U.S., the dollar has encountered mounting downside pressures, including large interest rate cuts by the Federal Reserve. Nonetheless, it has actually appreciated in value since March 2008. This can be explained by its role as a key currency, which requires central banks to provide significant amounts of dollar liquidity amid the financial crisis.