ＵＳ Ｄｏｌｌａｒ’ｓ Ａｐｐｒｅｃｉａｔｉｏｎ Ｄｅｓｐｉｔｅ ｔｈｅ Ｆｉｎａｎｃｉａｌ Ｃｒｉｓｉｓ

During the Asian financial crisis，the exchange rate of Thai baht against U.S. dollar grew by 17%. The rate of Korean won against U.S. dollar skyrocketed to a record high of 1008:1 and that of Indonesian rupi-ah against dollar even crossed the 10000:1 mark. However， after the international financial crisis broke out in 2008， the dol-lar index turned out to rise dramatically. On November 21， 2008， the dollar index reached 88 points， rising by 23.3% over the 71 points on April 22， 2008. Conven-tional wisdom is that a currency should depreciate when the economic fundamen-tals are in a downturn. Then how do we explain the substantial appreciation of theU.S. dollar?