Brew Markets Understanding Dollar Valuation and Global Currencies & Olympic Metals
Feb 6, 2026
Kathy Lien, Managing Director of FX Strategy at BK Asset Management and noted FX author, breaks down why the US dollar has slid and what that means for global rates, gold, and investor flows. She explains how geopolitics, treasuries, and reserve choices shape currency moves. They also touch on the monetary value of Olympic medals.
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Trouble Drives Gold, Not Always Dollars
- Geopolitical shocks haven't pushed investors back into dollars; many are buying gold instead.
- Central banks now hold more gold than U.S. treasuries or dollars, showing shifting confidence.
Yields Up But Dollar Down Signals Selling
- Yields can rise while the dollar falls when foreigners are selling U.S. bonds, not buying them.
- That disconnect reflects selling-driven yield moves rather than demand for dollar assets.
Monitor Dollar Moves For Inflation Risk
- Watch the dollar for inflation implications because a weaker dollar tends to push inflation higher.
- Consider how a cheaper dollar affects consumer prices, imports, and corporate earnings exposure.
