The David Lin Report · Monday, June 29, 2026
Michael Howell explains the sustained uptrend of the US dollar, which began after the Global Financial Crisis. He attributes this strength to capital inflows driven by enthusiasm for US tech leadership and changes in banking and insurance regulations that favored US assets internationally.
“This is the US dollar. This is the trade weighted index going all the way back to the mid-1960s.”
“What this shows is the underlying strength of the dollar basket. You can see that that is in an uptrend.”
“That uptrend basically began just after the GFC. It is underpinned by capital flow. This is our estimates of capital flow into the dollar. You'll see this very buoyant.”
“Why is that occurring? It's occurring for a number of reasons. One is that that latest surge is because of enthusiasm about US tech.”