Excerpt from Forbes quoting DataTrek:
…. “In the current environment, the dollar’s strength is a sign of investors’ concerns about a global recession, say Nick Colas and Jessica Rabe of DataTrek Research, adding that it signals a flight to the relative safety of the world’s reserve currency, as the euro, British pound and Japanese yen fall to their lowest levels in years.
DataTrek notes the dollar, which is up some 16% over the past year, has posted similar rallies during past periods of market stress—including during the Great Recession, when the dollar jumped 22% in the second half of 2008, and in the first quarter of 2020, when it rose 7% as the pandemic forced businesses to shutter operations around the world”….
Full article here on Forbes.