Discover and read the best of Twitter Threads about #DollarIndex

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Congressi trolls who know nothing about Economy,are giving gyaan on #Dollar& #Rupee

Yes Rupee hit 77.40 to a Dollar,but,but..

Every major currency has hit lows against Dollar

China's Yuan hit 2yr low@ 6.7 to $
Euro hit 5yr low@ 1.04 to a $

#DollarIndex hit 20yr high at 104.07
Some Business News anchors are saying Rupee has fallen against Dollar because our monthly #TradeDeficit is hitting $20bn&our Current Account Deficit(CAD),will be 3%

Well,$20bn a month Trade Deficit is no big deal for us,given that our Goods+Services Exports are a massive $670bn
2.5-3% CAD for an economy growing at average of 7.5-9.5% is not a big deal either

In fact,in last 8yrs,average CAD under @narendramodi govt has been sub 2%,so we have enough leeway on that count

Why then are major Currencies falling against Dollar?

Well,reason is,Fed Rate Hike
Read 5 tweets
Beyond immediate inflationary pressure and quarterly corporate profits abroad, the counterintuitive shift strengthens producers leverage in the supply-chain as well as creating potential trade/socio-economic instability #uncertainty #Fed #business #dollarindex
Read 4 tweets
A Take on #USD as reserve currency
#USFED #dollarindex #Dollar #dollarglobal #EURUSD #EURO

The Fed has printed more money out of thin air in just the last couple of months in 2020 than it has for its entire 107-year existence.
Before February 2020 , the Western governments were in debt to an extent where it would have been impossible to repay.
What’s a bigger issue, is the debts that were accumulated before the virus and those debts now have been blown to sky-high proportions
The only way to solve that problem is to default on it outright or to default on it by virtue of an inflationary outcome.
post-2008 financial crisis, the "solution" to the problem was an extension of credit by the banking system.
Read 9 tweets
So biggest casualty of #Fed warning on #US #economy y'day, was #Gold,which dropped 3% to $1951.90 an ounce,within minutes of #FedMinutes

Silver too fell below $28

Rout was not limited to precious metals--#Nasdaq sold off despite #Apple hitting $2 trillion market cap

#Covid_19
#CrudeOil whipsawed in tight range with #WTI at $42.83

#Fed's take on economic downturn was nothing new&yet markets collapsed

Only asset which saw aggressive buying was US #Tbills,with 10 yr #bond #yield@ 0.665% Vs previous close of 0.685%

#Dollar had its best day in 2 months
So what does y'day's frenzied buying in #bonds indicate?Is the #RiskOn trade over?

Well,not quite--With $9 trillion of excess global #liquidity sloshing around due to coordinated Central Bank rate cuts,since #Covid_19, equities will move up,albeit with severe bouts of volatility
Read 7 tweets

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