Dollar Falls 10% in First Half, Boosting US Exports — But Will it Undermine Dollar's Global Status?

The dollar index broke below the 97 threshold on the final trading day of the second quarter, posting a cumulative decline of 10.7 per cent in the first half — its worst performance since 1973. "The dollar is off to its worst start in more than half a century (since 1973)," The New York Times characterised the currency's weakness. For US President Donald Trump, this may be welcome news — dollar depreciation makes American export products more attractive to foreign buyers. However, this simultaneously increases inflationary pressures domestically, and some analysts worry that continued dollar depreciation could undermine the currency's international standing.

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Herman Ho (Economic Reporter)

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