Dollar in distress: US inflation miss shakes markets

The past fortnight has been eventful with high volatility observed in both Emerging Markets (EM) and major currencies. The significant development was a sharp decline in the US Dollar (USD). Indeed, the USD Index reported one of the largest weekly sell-offs since the Global Financial Crisis. Investors reacted to a less-than-expected set of US inflation figures. The headline inflation dropped to 3% in March 2021, while the core inflation decreased to below 5% in November 2021. The sell-off in ...