USD - U.S. Dollar Strength

2024-06-11 16:40:35 ET

Summary

• The U.S. dollar value has risen since the start of 2021.
• The strength of the U.S. dollar has come from the Federal Reserve, who has raised its policy rate of interest and reduced the size of its securities portfolio.
• Before the fall election, the Fed will be very cautious about reducing its policy rate of interest and will continue to reduce the size of its securities portfolio.
• Following the election, the Fed is expected to keep a strong dollar to maintain the dollar's global role as other countries attempt to dethrone it and as digital becomes more universal.
• We are entering a period of time when the U.S. must have a strong dollar to support the economic and political changes taking place in the world and the technological changes that are impacting money.

Here is what has happened to the value of the U.S. dollar since January 2021.

And, here is the movement of the U.S. dollar against the Eurodollar over the same period. The U.S. dollar has gained 11.5 percent in value during this time....

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