The lagged effects of higher interest rates are biting into economic growth, but inflation remains way too high. This mix presents central bankers with a tougher decision, and financial market participants are getting whip-sawed. Compared to Wednesday closing levels the dollar is down 0.4% against the Canadian and Australian dollars, 0.2% versus the euro and Swiss franc and by 0.1% vis-a-vis the yuan and kiwi. The dollar also firmed 0.3% against the Mexican peso, 0.2% against the yen and 0.1% relative to sterling. On a weighted basis, the DXY dollar index has barely moved since yesterday. Stock markets are somewhat ... (full story)