Rising Yields Don’t Have to Mean a Strong Dollar, Says Patel

The video discusses the trading trends of the US dollar in 2018, highlighting that rising US yields do not necessarily strengthen the dollar. It provides historical context by comparing current trends to those in the 1990s and 2005. The discussion explores how US yields reflect investor confidence in the long-term US economy, suggesting a shift of investments elsewhere. The video also examines the theme of dollar weakness, attributing it to stronger global growth and better interest rates in emerging markets. Finally, it addresses the impact of large US fiscal and current account deficits on the dollar's medium-term outlook.

What does the text suggest about investor confidence in the US economy?

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What are the implications of large twin deficits on the dollar's future?

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