Bodes ill for stocks
US dollar index up to 113
USD = 1 Swiss Frank (first time in over a decade)
USD = 147 Japanese Yen (can’t remember the last time)
USD = .9 British Pounds
USD = more than a Euro (1.03) (for first time in my memory)
USD = 1.59 AUD
Gold is down to $1,681/oz
Silver is down to $19/oz
In short, these numbers are nuts from an historical standpoint and indicates that the international monetary fabric is being stretched to an unrecognizable extent. Much of this is due to consequences related to the Russo-Ukraine War as, while the West is not directly shooting at Russia, both sides are trying to economically ruin the other. While our attempts at stifling the Russian economy are partially mitigated by the high cost of petroleum products, the adverse effects on the West have been asymmetric, and while the US is experiencing higher than usual inflation (caused by response to the COVID pandemic, but accelerated by the current geopolitical conditions), Europe is suffering far worse.
In that context, while in terms of USD, our stock market has crumbled and our interest rates are still moderate to shabby, because of the rise in the USD, in terms of other currencies, US investments have not suffered to the same extent and there is a carry trade to the USD.
Be REAL careful out there as things have gotten pretty weird on the currency front.