How much is the US dollar shaping global markets right now?▼

Business

Published 20d ago

<p>The US dollar has faced competing pressures, propelled in markets as a result of high-interest rates prompting inflows, yet also declining as belief grows that the Fed is done with its monetary tightening cycle. The dollar&#39;s strength was spurred by aggressive Fed policy which impacted many emerging market currencies, but with the Fed potentially pausing hikes now, some experts see room for recovery in battered currencies like Argentina&#39;s peso.</p> <p>Argentina faces immense economic hurdles with 143% inflation, negative foreign reserves, and the possibility of a recession. Yet hopes have pinned on newly elected President Javier Milei to lead a turnaround. A key part of his plan is shifting Argentina to use the US dollar as opposed to the peso. By eliminating the peso and adopting the U.S. dollar instead, Milei aims to tame inflation pressures and stabilize Argentina&#39;s economy.</p> Source