As the USD surges and a government shutdown looms on the horizon, the outlook for the American economy is uncertain.
With the US approaching its debt ceiling, investors may be looking for safety in the dollar as the country could fall into default as soon as after the June 1 deadline.
The U.S. dollar fell 0.6% following Wednesday’s release of the March CPI report and FOMC minutes. The combination of the data led to growing expectations that the Fed could cut rates later in the year.
Former Goldman Sachs chief economist, Jim O'Neil, has been calling for countries to challenge the US dollar. Brazil and China agreed to trade in their own currencies in a move seen as a step towards rivaling US global economic dominance.
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