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Dollar Is Only Place to Hide This Year as Risk Assets Crumble

  • Deep recession needed to reduce US inflation, Citigroup says
  • BBH says global backdrop continues to favor the US currency
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Strong Dollar Is Very Much Intact: UBP’s Villamin
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A surging dollar is now the only possible hedge for what’s turning into the biggest destruction of shareholder value since the global financial crisis.

With global equities having already lost $23 trillion this year, the US currency’s inverse relationship with risk assets makes it the only game in town for at least the rest of of 2022, according to Citigroup Inc. Canadian Imperial Bank of Commerce says the dollar is set to keep rising, while Brown Brothers Harriman & Co. says the global backdrop continues to favor the US currency.