Posted on 04/22/2025 7:50:17 AM PDT by delta7
KEY TAKEAWAYS -The U.S. dollar has declined more than 4% since the start of the year, its biggest drop over this period since 2008. -Increasing recession risks have put interest rate cuts back on the table this year; interest rates are one of the primary drivers of the U.S. dollar's value. -A weaker dollar threatens to increase the cost of tariffs for consumers and businesses; it could also stimulate the economy by making U.S. goods and services less expensive for the rest of the world. -The U.S. dollar is having its worst start to a year since 2008 amid growing concern the Trump administration’s unpredictable economic and foreign policies threaten growth.
The U.S. Dollar Index (DXY) declined 4.2% between the start of the year and Friday’s close. That marked the largest decline for the index since 2008 when the index slid 4.8% over the same period as the Global Financial Crisis unfolded….
The plan is working.
A strong dollar benefits imports and those who want to take a foreign vacation.
A weak dollar favors exports and tourists from other countries visiting the U.S.
A declining dollar, with huge historical, unpayable debt has signaled a currency’s demise for centuries. The US is no different than all the 4,000 currencies in history that has failed….it is now only a matter of time.
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