Question: This questions is based on the article, Bucking the trend, https://www.economist.com/finance-and-economics/2016/03/31/bucking-the-trend (a)The article points out that in trade-weighted terms, the US dollar had risen by

This questions is based on the article, "Bucking the trend," https://www.economist.com/finance-and-economics/2016/03/31/bucking-the-trend

(a)The article points out that in trade-weighted terms, the US dollar had risen by almost 20% between early July 2014 and early January 2016. What factors account for this rise before December 2015? Does the discussion in the article point to an increase in the interest rate differential between the assets denominated in US dollars and those in other currencies before December 2015 that may account for the rise?

B) The article indicates that "the dollar continued to rise for the first three weeks of the year but then the tide turned: since January 20th, the currency has fallen by 3.8% in trade-weighted terms." What factors in the US economy may have contributed to this decline in the value of the dollar?

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