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2025-11-03 22:40:20
[Rabobank: US Productivity Boost Has Been a Key Driver of Dollar Strength] Rabobank's Jan Foley points out that since the 2008 global financial crisis, US productivity gains have been a key driver of the dollar's strength, and the dollar may further benefit from this growth. "Productivity gains not only promote wealth creation but also effectively offset inflation risks." The US boasts the world's largest technology companies. Despite concerns about overvaluation of tech stocks, this is still a good sign. However, Foley suggests that the dollar's future appreciation may be relatively slow. Factors such as Japan's escape from deflation and completion of its stock exchange reforms; Africa's abundant mineral resources; Germany's fiscal stimulus policies; and central banks holding more gold may all dampen investors' willingness to buy US assets. The US Dollar Index (DXY) rose to a three-month high of 99.958.
