Will Falling Stocks And Interest Rates Crush The Dollar?

At EWI’s Message Board, readers often ask us to explain various “inter-market correlations.” Here’s a recent question: “If stocks and interest rates are going down, then why would the dollar rise [as you are forecasting]? Surely, if the first two events occur, the overseas investment in the dollar will reduce, not go up, which will drag it down?” When trying to answer a question like that, you could go a couple of routes. You could consider the “fundamentals” described in the question – or, you could take a look at a couple of charts.