Insight - US dollar surge both symptom and catalyst of world slowdown

Strong value: A trader works near a screen showing the foreign exchange rate between US dollar and South Korean won in Seoul. The dollar is gaining across the board, up almost 5% against major world currencies since June. — AP

A surging US dollar signals for some the clearest sign of an ebbing money tide and an abrupt slowdown of the world economy over the remainder of 2021 at least.

Disruptions from new strains of Covid-19, severe goods and labour supply bottlenecks, fuel price squeezes, power outages, slowing credit growth and the gradual withdrawal of central bank liquidity have drained the post-pandemic recovery of momentum.