"This held that the dollar had a “convex” relationship to US economic growth.

On this theory, if the US economy goes into a severe decline, or hard landing, then the dollar should rise. The rest of the world suffers, and the dollar is a relative safe haven.

If the US economy goes on a growth spurt, outpacing the rest of the world, the dollar gains.

But between these two outcomes lies a “soft landing”, where the US economy muddles through. If this happens, the dollar gets pummelled. Other countries have higher interest rates, and there is nothing to defend the dollar."

Source:
Read more on Financial Times

Who is Stephen Jen?