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Odd Lots

Hyun Song Shin Explains Why This Dollar Shock Is So Unique

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.41.6K Ratings

🗓️ 31 October 2022

⏱️ 48 minutes

🧾️ Download transcript

Summary

It's no secret that a strong US dollar causes the rest of the world pain, but the impact of this year's rally is shaping up to be a bit different than previous episodes of dollar strength. Hyun Song Shin is the Economic Adviser and Head of Research for the Bank for International Settlements, which has just published a bulletin outlining why this particular dollar cycle is so unique. Shin has also done a ton of previous academic research on this exact topic — examining what happens to global trade and business investment when the dollar hits its highs. In this conversation, we talk to him about the impact of the dollar rally, what could stop it and what policymakers around the world can do to cope.

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Transcript

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0:59.4

Hello and welcome to another episode of the All Thoughts podcast. I'm Tracy Alloway,

1:25.4

and I'm Joe Weisenthal. Have you looked at a chart of the dollar recently?

1:30.5

It's the only chart I look at. Well, if you were going to choose one desert island chart right now,

1:36.8

the dollar is a pretty good candidate. Yeah, that's why I only have juky when I say it's the only

1:42.0

chart that I look at because so many, you know, the strong dollar is become the sort of like central

1:48.7

market story right now. And then everything else sort of trades off of is the dollar week or

1:54.4

strong. I think we went a couple of days where you're like paying attention to the British pound,

1:58.3

but now that kind of seems to be over. No, it's really all about it's all about the dollar.

2:02.8

And it's coming off a little bit from its highs, but it's still very high.

2:05.3

Yeah, I was going to say, you know, the last time we had an episode specifically devoted to the dollar,

2:10.9

I think was in the summer and we were kind of joking about top-ticking it.

2:14.4

Yeah, we didn't. We definitely didn't because it just kept going. And I think it reached,

2:18.2

you know, a record high in September. And now, as you mentioned, it's come down a little bit,

...

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