Tuesday, April 13, 2010
This is a chart of the Fed's measure of the dollar's strength vs. a large basket of other currencies and adjusted for inflation differentials. I think this is one of the best dollar indices available. As it shows, as of the end of February the dollar was only slightly higher (about 3-4%) than its all-time lows. This, despite the mountains of concerns that have supposedly arisen over the risk that Greek indebtedness could seriously threaten the future existence of the Euro. This is more evidence to back up the assertion in my previous post that market pricing still reveals relatively high levels of concern about the future of the U.S. economy.
Posted by Scott Grannis at 12:57 PM