QNB has attributed the dollar’s strength to the relatively strong performance of the US economy, calling the currency a “safe haven” instrument that was again substantiated by geopolitical turbulence in Europe and Asia.
QNB’s weekly report has predicted that the advanced economies are likely to remain in a more fragile position in terms of growth compared to the dollar, which will remain high for some time, adding that that the value of the greenback has recently risen, against major currencies to levels not seen in almost two decades, stressing that the US Dollar Index (DXY) has increased 10% since pre-pandemic levels with more 10% a year, and 19% compared to the post-pandemic levels, while this increase encompassed all major currencies, including the euro and the Japanese yen.
The report showed that the dollar was supported by high demand from global investors at the beginning of the pandemic, but soon after that, the US dollar…
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