About this work
Expectations of Federal Reserve rate cuts did not weaken the dollar against other major currencies in July 2019. Gregory Basile, Jonathan Fortun and Robin Brooks identify simultaneous easing signals from other central banks and a reduced exchange rate response to interest differentials. Both mechanisms limited the currency impact of a more accommodative Fed outlook.
Abstract
Expectations of Federal Reserve rate cuts did not weaken the dollar against other major currencies in July 2019. Gregory Basile, Jonathan Fortun and Robin Brooks identify simultaneous easing signals from other central banks and a reduced exchange rate response to interest differentials. Both mechanisms limited the currency impact of a more accommodative Fed outlook.
Cite this work
Gregory Basile, Jonathan Fortun, Robin Brooks (2019). Global Macro Views: Why is the Dollar not Falling?. Institute of International Finance.