Equity culture postpones dollar rally
MARKET VOICE
The recent weakness in the dollar was due primarily to two factors. First, official flows to redistribute foreign reserves have supported the euro. Second, the bond culture I have always assumed would dominate the investor mindset has temporarily been superseded by the equity culture.
As long as investors think the goldilocks scenario will persist, the equity culture may dominate, thereby postponing the time when the US yield premium starts to have a significant impact on the dollar.
The recent
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