No, that can’t be the case, at least if the purchasing power parity model of currency valuation holds.
Regardless of whether this is the case, either lower interest rates are bad for the dollar, or lower inflation is bad for the dollar, but both can’t be true as the article suggests.
I personally think someone with a lot of money is manipulating the $. There simply is no reason for the US Dollar to be worth 40% less than it was 4-5 years ago. Our debt as a % of GDP has gone down, our growth is stronger than Europes, our unemployment rate is lower, and our inflation is tamer. It simply doesn’t make sense. If it stays this low though, it should be a huge boon to our manufacturing sector and exports in general.
If lower inflation is bad for a currency then Zimbabwean & Venezuealn curencies should be strong.
Seriously, the job of most financial reporting is to project optimism.