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#CryptoMarketPrediction The US dollar has been the weakest out of 17 major global currencies this year.
That's been a result of Federal Reserve interest rate cuts & Trump's tariff policies.
The impact of dollar weakness is a mixed bag for everyday Americans. The assorted pros and cons are detailed below:-
👉 It makes US goods and services cheaper for foreign buyers, which supports jobs in certain industries - President Donald Trump pointed out the benefits of a weaker dollar when speaking to the press in July, suggesting that the US could "make a hell of a lot more money" when the greenback was weak.
"When we have a strong dollar, one thing happens: It sounds good. But you don't do any tourism. You can't sell tractors, you can't sell trucks, you can't sell anything."
"Pushing down the dollar's value has been a policy priority for the administration as it sought in part to make exports more attractive." - Joseph Brusuelas, Chief economist
👉 It boosts earnings of multinational companies who do business overseas, which also boosts their stocks - A boost to international sales is inherently good news for US firms that sell goods abroad. That applies to most of the S&P 500, where foreign sales are significant for at least half of the index's companies.
👉 Con: Higher prices for imported goods - For everyday Americans, the story is a bit opposite. The buying power of your dollar goes down as the value of the dollar goes down against the basket of other currencies. So it does make it harder to keep up with higher cost of goods.
👉 Traveling is more expensive - On the flip side, it also makes the US more attractive as a tourist destination for foreigners, who have gained purchasing power.
There's puts and takes. If you're planning that European vacation, it's going to cost you a bit more in that currency translation