World faces dollar squeeze: Redward

Economist Peter Redward predicts US dollar strength due to a gradual decline in the supply of greenbacks to global capital markets.
Peter Redward
Peter Redward

The world appears to be awash in US dollars, thanks to the US Federal Reserve’s aggressively loose money supply Paradoxically, however, global capital markets may be experiencing a gradual tightening of access to greenbacks, according to independent economist Peter Redward

This suggests to him that the US dollar is likely to appreciate against other major currencies during the next 18 months or more

The New Zealand-based analyst (he previously served as head of emerging Asia research at Barclays in Singapore) said: “The rest of the world needs dollars to conduct international trade and capital markets activity ”

The source of dollars is from the US current-account deficit, and from US corporations and...

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