While waiting for the “new world order” the dollar has returned to the peak of its strength

The increasingly strengthening economy of China and the arguments that Russia can easily overcome the heavy sanctions that have come with Chinese support had led to the expectation that the dollar’s throne could be shaken. But it seems that these ideas have not yet found much response in the real world.

Towards the end of the abundance of money in the world, the US dollar, along with rising interest rates, is at the peak of its strength against other currencies.

The money taps in the world were opened due to the Covid-19 pandemic, and with the increase in inflationary pressures and the war that broke out between Russia and Ukraine, authorities had returned to strict monetary policies.

As for the dollar index, it lost 6.7 percent in 2020 due to extremely loose monetary policies and saw below the critical threshold of 90.

The index is at a 20-year peak with 103.9 in April due to changing perceptions in the world and the fact that the US Central Bank (Fed) has signaled that it may take more aggressive steps if necessary in the process of raising interest rates.