Why U.S. Dollar is Lagging Euro, Yen Despite Higher Rates?

The U.S. dollar has not appreciated against the euro and yen despite the Fed raising rates, due to increased risk from trade disputes with China and others.

About the Presenter

Bluford “Blu” Putnam has served as Managing Director and Chief Economist of CME Group since May 2011. With more than 35 years of experience in the financial services industry and concentrations in central banking, investment research, and portfolio management, Blu serves as CME Group’s spokesperson on global economic conditions.

View more reports from Blu Putnam, Managing Director and Chief Economist of CME Group.

FX and Trade Tensions

From U.S. tariffs on steel and aluminum to levies on Chinese imports, and the potential for retaliatory actions, are revving up trade tensions which could be capping the U.S. dollar against the euro or yen despite multiple Fed rate hikes. Protect against the uncertainty by hedging with CME Group FX products.

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