Home Economy Materials Weaken As Dollar Strengthens — Materials Roundup

Materials Weaken As Dollar Strengthens — Materials Roundup

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Producers of metals and other raw materials fell as the dollar continued to strengthen against a basket of rival currencies.

The dollar rose on inflation concerns, on a belief that the Federal Reserve will soon tighten policy to ward off inflation, and on a general wave of risk aversion. Among high-risk currencies, the British pound sterling fell by more than 1%.

The dollar may continue to strengthen against the euro and other currencies because of a “decoupling” in the rate of economic growth over the last two decades, said strategists at brokerage Bank of America Global Research, in a note to clients.

Among the potential structural reasons for the U.S. outpacing Europe’s growth, according to the brokerage is the younger U.S. working-age population.

In the latest sign that corporations are hunkering down for extended supply-chain struggles, building materials giant HeidelbergCement agreed to buy a 45% stake in Command Alkon, a…

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