Part 2/9:
Johnson emphasizes that the movement of the dollar is not merely a result of domestic factors; it's profoundly influenced by global dynamics. The recent interest rate cuts made by the US Federal Reserve did initially contribute to a weakening of the dollar over the first part of the year due to market anticipation. However, as those cuts commenced, rather than falling significantly, the dollar's value held steady, and eventually began to rise.
This resilience in the dollar occurs despite a backdrop of global economic turbulence. Countries like China have initiated massive easing policies due to deflationary pressure, which highlights that the interplay between currencies is a matter of relative strength rather than absolute.