US dollar dominance could amplify crisis impact, IMF fears

A currency trader wearing a face mask walks by the screens showing the foreign exchange rate between US dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, on Friday Emerging markets currencies have seen their value plummet against the dollar during the pandemic © Lee Jin-man/AP

The dollar’s exchange rate will be a key factor in the pace of global economic recovery while domestic currencies will have a smaller impact as the world struggles to bounce back from the pandemic, according to a study by the IMF.