Question

While the US economy is badly hit by the Covid-19 pandemic, the US dollar continue to appreciate. Why is that?

Answer 1

The coronavirus epidemic in the U.S. caused millions of people to lose their jobs and bring the economy on its knees, but it did not dethrone the U.S. dollar.

In the contrary, this year's currency has risen in value, rising six per cent from its lowest point reached early March, according to the US dollar index, which tests the value of the greenback against a basket of other currencies.

The rise of the dollar is attributed, above all, to its privileged place as the reserve currency of the world. That means investors willing to save their money in times of recession are in safe havens, even though the US economy is still in trouble.

In contrast to different monetary forms, "you find that you can print a great deal of dollars without the dollar essentially debilitating drastically That is the US Federal Reserve's move as of late to siphon numerous trillions of dollars in liquidity into the money related framework have not debilitated the estimation of the cash.

"The interest for wellbeing in this atmosphere is outpacing what the Fed has done, The money is additionally the most exchanged the world on the outside trade showcase, and the Fed declared a month ago that it would encourage cash trades with a few other national banks so they could expand their dollar holds.