While popular indices such as the US Dollar Index may suggest otherwise, the US Dollar's current bull run is not without precedent, nor is it the greatest period of US$ strength.
The chart below shows the multi-month period of US Dollar strength in 2001 following the terrorist attacks in the US. The US Dollar notched monthly gains for five consecutive months.
The following chart shows the multi-month period of US Dollar strength in 2008 during the global financial crisis. The markets purchased the US Dollar as a flight-to-quality. The US Dollar scored monthly gains for eight consecutive months.
The chart below shows the current period of ongoing US Dollar strength. The US Dollar has registered four consecutive monthly gains.
Perhaps the ongoing US Dollar run-up will be be extended and result in a period of unprecedented US Dollar strength, but the markets are not quite there yet.
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