The top IMF official's comments might be relevant to bitcoin $BTC traders, since the largest cryptocurrency's has proven to be correlated with the dollar's strength in foreign-exchange markets. HeleneBraunn reports
Washington D.C. – The head of the International Monetary Fund said Wednesday that central banks should refrain from currency interventions, instead suggesting that they use interest-rate raises as the preferred tool for combating foreign-exchange weakness versus the dollar.
to combat rising consumer prices in the U.S. Because so many countries are dependent on imports, higher local prices for international goods – often denominated in dollars – have triggered bouts of inflation around the world. A stronger dollar also makes it harder for emerging-market countries to repay dollar-denominated debt, since taxes are usually assessed in the local currency., since the largest cryptocurrency's price is inversely correlated with the U.S.
Because the U.S. dollar is the world’s reserve currency, the Federal Reserve is by default “the central banker to the world,” Bove argues, which means that if the Fed tightens, all other major central banks must follow suit if they want their country’s currency to remain on the same level as the dollar.
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