Mnuchin at Davos endorses the dollars decline as a benefit to the American economy

[UnTied]

The U.S. dollar declines when the dollar value is lower compared to other currencies in the foreign exchange market. It means the dollar index falls. It also means the euro to dollar conversion is higher because euros get stronger and can buy more dollars when the U.S. currency weakens. It could also threaten the yen carry trade because a weaker dollar often means a stronger yen.

A declining dollar can also mean a fall in the value of U.S. Treasurys.


This drives up Treasury yields and therefore, interest rates. For more, see What Is the Relationship Between Treasury Notes and Mortgage Rates?

It can mean that foreign central banks and sovereign wealth funds are holding fewer dollars too. This lowers the demand for dollars.


https://www.thebalance.com/dollar-decline-or-dollar-collapse-3306090

[roamer65]

1. It means a currency war.

Competitive devaluation of currencies in the 1930’s was one of the big reasons for WW2.

[unblock]

2. Theres a famous snl skit from the very early days, Dan akyroyd as jimmy carter,

Saying “inflation is our friend” because eventually we’ll all be driving million dollar cars, etc.

Similar logic.

[flamingdem]

3. So much for my trip

to Europe

[GulfCoast66]

4. Well shit.

Besides all the ways this will help wreck our economy, now my trip to Europe just got more expensive!

These people are such fucking idiots! Do they think other nations will just leave their currency alone once we start manipulating ours?

[roamer65]

5. New Zealand sees it as a currency war.

https://www.stuff.co.nz/business/100870696/kiwi-dollar-surges-as-us-treasury-secretary-hints-at-new-currency-war