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In the past few years, whenever a bad economic number came out, the stock market tanked,...

In the past few years, whenever a bad economic number came out, the stock market tanked, but the USD appreciated. Why?

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Answer #1

Yes, whenever there was bad news in the recent times on the economic front, all stock markets dropped in response to the weak economy, this led to shift money to safe heaven assets which are usually priced in US dollars such as US treasury securities, Gold etc which led to higher demand for dollar. In addition, bad economic news, first impacts the emerging market currencies badly because of higher risk, this also indirectly led to higher value of dollar.

the above is answer..

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