Learn more

The U.S. dollar remains the world’s reserve currency and the pricing mechanism for most commodities. The dollar’s exchange rate versus other reserve fiat currencies is often a function of interest rate differentials. At the Fed’s August Jackson Hole meeting, Chairman Powell sent a strong message that inflation has moved toward the central bank’s 2% target and that market participants should expect a decline in the short-term Fed Funds Rate at the September FOMC meeting. Lower rates tend to weigh on the dollar’s value against other currencies. Meanwhile, the U.S. dollar index fell, and bonds ro…

cuu