- September 8, 2022
- Posted by: Stratford Team
- Category: Economy
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September 7, 2022 • 1:28 pm ET
Don’t expect a Plaza Accord 2.0 to reverse the dollar’s surge
The 1985 Plaza Accord created an unprecedented mechanism for market intervention to return a surging dollar to normal levels when market forces of supply and demand failed to do so. However, neither eventuality seems likely in the short-term with today’s strengthening dollar, and it may be here to stay.
The US dollar has soared against the world’s major currencies this year by 13.5 percent. It reached parity with the euro in July for the first time in twenty years. It has touched 144 yen and 0.86…
