
The strengthening of the US dollar index has a certain hedging effect against oil price increases. Non-US dollar currencies are suppressed, purchasing power declines, and inflation is maintained in an abnormally stable state.
There is a logical paradox: choosing other assets due to US dollar credit risk, while at the same time, other safe-haven assets are all priced in US dollars. When a real crisis occurs, funds will seek the most liquid asset (the US dollar) to exit, and this liquidity in turn strengthens the dollar.
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