Dollar Decline Will Resume
Although it has been rising by 25% in 2014 and 2015, the dollar value will now go on its way of declining. Forex traders, for example, were betting everything on a strong dollar after the Federal Reserve announced it would raise interest rates. Now, however, rates are rising too slowly, so traders turn to other currencies to bet on.
The same goes for foreign investors, who already started to change their portfolios with non-dollar assets, such as the euro.
How it affects you: The weaker the dollar, the higher the import prices – and all of these things lead to inflation. In that case, it won’t take too long until oil and gas prices go high and export prices are lower, thus spurring economic growth.
