SocGen's Edwards: Weakening the dollar is not way out of mess for markets

Japan and eurozone feeling the pain

Société Générale's Albert Edwards has said the Fed will be forced to raise rates further on the back of rising domestic inflation, leading to the US dollar placing renewed pressure on China, commodities and emerging markets.

Edwards (pictured) said the recent uplift effect the weakening dollar has had on China and emerging markets, while Japan and eurozone have been thrown into "real trouble", is likely to be temporary as the Fed is forced to tighten further. He said: "The weakening of the US dollar in the wake of February's Shanghai G20 meeting is widely seen as the turning point for global markets, providing welcome relief for equities, commodities and EM alike. "The weaker dollar may have provided some short-term relief but what the dollar giveth, the dollar taketh away and the economic pain is instea...