Question

In 250 words or more, What is the long-term outlook for the U.S. dollar?

(Please type and not write as it is hard to understand everyone's writing)

Answer 1

The dollar at the moment has been quite strong in the wake of world events like Brexit, the uncertainty in oil prices and political upheaval in several countries. The introduction of a new Federal Reserve governor has also meant that the control of monetary policy will be different. It is likely that interest rates will be kept low now to try and stimulate the economy especially with elections nearing. Such low interest rates will mean will mean that investment in the country will fall and so the currency will depreciate. This will mean that the balance of trade of the US will improve. The US dollar is thus expected to depreciate especially for this coming year with important mid terms coming at the end of the year. Beyond that the control of interest rates by the Fed will play an important role in deciding which way the dollar will move.