The world appears to be awash in US dollars, thanks to the US Federal Reserve’s aggressively loose money supply. Paradoxically, however, global capital markets may be experiencing a gradual tightening of access to greenbacks, according to independent economist Peter Redward.
This suggests to him that the US dollar is likely to appreciate against other major currencies during the next 18 months or more.
The New Zealand-based analyst he previously served as head of emerging Asia research at Barclays in Singapore said “The rest of the world needs dollars to conduct international trade and capital markets activity.”
The source of dollars is from the US...