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Taking Refuge in Dollar Could Expose World Economy to New Perils

July 5, 2016

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It is known as the flight to safety, yet it may be leading the global economy toward fresh danger.

In the week since Britain stunned the world with its vote to quit the European Union, coloring markets in uncertainty, investors have dumped much that seems risky — the pound, the euro and shares on stock exchanges around the world. They have entrusted the proceeds to that rare sure thing, United States Treasury bills.

Too much money may now be sloshing toward the dollar.

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