The Dollar Is Winning by Default — And That's Not the Compliment It Sounds Like
The euro just hit a 17-month low against the dollar, down nearly 7% from its late-January peak. That sounds like good news for America — but the dollar isn't rising because the US economy is thriving. It's rising because Europe looks worse, and a currency that wins by default is a currency whose dominance rests on shakier ground than most people realize.
Bottom Line
The dollar's rally is real, but it's built on Europe's problems rather than America's strengths. The euro's slide to a 17-month low reflects genuine concerns — French public finances, energy costs, political worry — but the deeper story is that the dollar's safe-haven reflex, while still functioning, is less dependable than it used to be. Enjoy the strong dollar if you're traveling; don't mistake it for a vote of confidence in US fiscal health.