The Dollar Is Weakening

in news •  8 years ago 

BY CHRIS LOWE, EDITOR AT LARGE, BONNER & PARTNERS
Chris Lowe
The days of the strong dollar are over…

Today’s chart is of the U.S. Dollar Index.

It tracks the exchange value of the dollar versus a basket of six major trading-partner currencies.

20170523-dre-01.png

As you can see, since the index peaked last December, it’s fallen 6%.

A weaker dollar isn’t necessarily bad news for the U.S. economy.

For example, it makes U.S. exports more competitive by lowering the cost of U.S.-made goods abroad.

It’s also a boon for U.S. firms – such as Mastercard and Priceline.com – that earn the majority of their revenues overseas.

As the dollar weakens, those overseas revenues become more valuable in U.S. dollar terms.

BY CHRIS LOWE, EDITOR AT LARGE, BONNER & PARTNERS

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