The dollar climbed to its highest level in years this week, a reflection of the standout status of the American economy against a global backdrop clouded by the coronavirus.
Pessimistic economic updates from Japan, Britain and Germany have only added to the uncertainty created by the coronavirus, which all but idled China’s economy for weeks.
The slowdown has stimulated a rush into American stocks and bonds, as global investors exchanged their currencies for dollars — pushing the value of the dollar higher — and then used those dollars to snap up financial assets.
“People are spooked by the coronavirus, and the global economy is weakening. It’s struggling mightily,” said Bob Schwartz, a senior economist at Oxford Economics in New York. “And whenever this happens, you see a capital flight into dollar-denominated assets.”
