Fed still the only hiker in town, but dollar refuses to play ball

When the economic storm clouds are gathering, a U.S. recession is on the horizon, stocks and long-term bond yields are falling, and the U.S. yield curve is close to inverting, you’d expect the dollar to strengthen.

Investors hunker down, U.S. capital flows back home and there’s a surge in global demand for safety and liquidity. All that points to a stronger dollar, especially when the Fed is virtually the only major central bank tightening policy, meaning U.S. interest rates and yields are significantly higher than those elsewhere in the developed world.

But after the Fed raised rates on Wednesday for the ninth