The Unlikely Ally: How Central Banks' Policies are Boosting the US Dollar The US dollar's recent surge can be attributed, in part, to an unexpected convergence of policy stances among major central banks.
Traditionally dovish European institutions, such as the European Central Bank (ECB), have been signaling a more hawkish approach to monetary policy.
This shift is driven by growing concerns over inflation and the specter of economic downturn. The ECB's decision to raise its deposit rate last week marked a significant turning point in this narrative.