The Eurodollar Is What’s Happening—Not Quantitative Tightening or Rate Hikes
Commentary
What is wreaking so much havoc all over the world? You’ve probably heard that the U.S. dollar is rising often precipitously, which means any currencies caught on the other side of it—frankly, all of them—are being swept into crisis. This isn’t the first time, either, because during the last eight years or so this has happened repeatedly.
Typically, however, that has predictably meant emerging market economies (EMEs) are the ones who get singed. For example, Brazil’s real in 2015 or India’s rupee in 2022—those cause little notice. But the dollar has snared several big ones, from China’s yuan (for the third time since 2014) to Europe’s euro, even Britain’s suddenly dulled sterling….