Home Capital Tong's Portfolio

USD will continue to strengthen in 2022

Tong Kooi Ong and Asia Analytica
Tong Kooi Ong and Asia Analytica1/6/2022 5:2 PM GMT+08  • 6 min read
USD will continue to strengthen in 2022
Persistent supply chain disruption is, in turn, keeping inflation higher for longer than originally anticipated.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The US dollar recorded its best annual performance since 2015, gaining nearly 7% in 2021 against a basket of major currencies, as measured by the US Dollar Index. We had previously explained in some detail why we had expected this very outcome throughout the past year, which was also the reason our Global Portfolio was heavily weighted in US stocks.

For a brief recap: Demand for the greenback was supported by robust recovery in the US economy — relative to the rest of the world — and corporate earnings, which, in turn, drew investors to US stocks. The Standard & Poor’s 500 index was among the best-performing indices in the world, up 26.9%, in 2021. The resurgence of Covid-19 cases in various parts of the world further spurred demand for the US dollar as a safe haven.

We think many of these factors remain in play in 2022. In fact, we think fallout from the pandemic has shifted, to a degree, growth momentum from emerging to developed countries. For a more in-depth discussion, please refer to our article in The Edge titled “The next big themes: Supply chain resilience and the end of low-wage as a competitive tool” (Issue 1394, Nov 1, 2021).

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.