Dollar Upheaval: This Time Is Different

Zhengyang Jiang, Arvind Krishnamurthy, Hanno Lustig, Robert Richmond and Chenzi Xu
Additional contact information
Zhengyang Jiang: Northwestern U
Arvind Krishnamurthy: Stanford U
Hanno Lustig: Stanford U
Robert Richmond: New York U
Chenzi Xu: U of California, Berkeley

Research Papers from Stanford University, Graduate School of Business

Abstract: What can we learn from the high-frequency responses in bond and currency markets to the recent tariff announcement about the status of the U.S. dollar as the global reserve currency? The dollar depreciated by 3.4% after April 4 in spite of rising U.S. interest rates and market volatility, which is highly unusual. The willingness of foreign investors to pay extra for the safety of dollar safe assets, including but not limited to U.S. Treasury, has declined. These asset market responses suggest that investors started to question the role of the dollar as the reserve currency.

Date: 2025-04
New Economics Papers: this item is included in nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.gsb.stanford.edu/faculty-research/work ... eaval-time-different

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:4241

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().