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High government debt plus borrowing to fund data center buildouts are two main factors driving the dollar’s current strength.
Nvidia became the latest tech giant to sell bonds on Monday, offering up $25 billion. Others — Amazon and Alphabet, notably — have also gone to the bond market in recent months.
Recent mergers and the ongoing debt limit negotiations in Congress could be prompting companies to borrow more.
Many companies are borrowing now — if they can — in a bid to get ahead of further rate hikes this year.
Many have been on a borrowing spree through the past two years of low rates.
Some borrow less because they’re optimistic, some because they’re pessimistic and some because they’re cautious.
