US assets retain unique appeal for global capital, as the recent boom in US tech stocks and rising optimism about the productivity enhancing implications of AI show.

Meanwhile, the Dollar provides one of the highest yields of the world's major currencies, thanks to the Fed's hiking cycle. In a world of weak global growth, this yield will also likely help the Dollar to appreciate.

For clues about the future direction of exchange rates, we would be watching for signs that investment opportunities in different economies are improving. For now, the USD offers attractive yields and remains a safe harbor during the current period of slow global economic growth.