Photo taken on March 19, 2020 shows U.S. dollar banknotes in Washington, D.C., the United States. (Xinhua/Liu Jie)
In a worrying sign, attempts from policy makers in some major economies to defend their currencies are "largely failing in the face of the dollar's unrelenting rise," says The Wall Street Journal.
NEW YORK, Sept. 20 (Xinhua) -- The U.S. dollar is experiencing a once-in-a-generation rally, a surge that threatens to exacerbate a slowdown in growth and amplify inflation headaches for global central banks, reported The Wall Street Journal on Sunday.
"The dollar's role as the primary currency used in global trade and finance means its fluctuations have widespread impacts," said the report, noting that the currency's strength is being felt in the fuel and food shortages in Sri Lanka, in Europe's record inflation and in Japan's exploding trade deficit.
This week, investors are closely watching the outcome of the Federal Reserve's policy meeting for clues about the dollar's trajectory, said the report.
The U.S. central bank is expected Wednesday to raise interest rates by at least 0.75 percentage point as it fights inflation, likely fueling further gains in the greenback, it said.
In a worrying sign, attempts from policy makers in some major economies to defend their currencies are "largely failing in the face of the dollar's unrelenting rise," it added. ■