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Will the dollar continue to recover?

The dollar has continued to recover over the past month. This has coincided with a further increase in the gap between 10-year government bond yields in the US and elsewhere. Although this gap began to increase in September 2017, it wasn’t accompanied by an increase in the greenback until this year. This may have been because the influence of the gap was trumped by that of other factors working in the opposite direction. One of these was stronger economic growth outside the US, which has slowed again.

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