After a monstrous run up against almost all other currencies as the FOMC (Federal Open Market Committee- Bernanke now Yellen) began raising rates ……. as a side note and preview of our headline article in our coming Newsletter, this creates headwinds for international investments as well … we digress … recent weakness has brought out the “Chicken Little’s”
This chart from 2012-2015
Year to date 2017, the United States Dollar has dropped against other currencies as our international friends begin to pick up their economic pace. Of course this creates chicken little dramatic comments of ….”The US Dollar sky is falling”
YTD 2017 US Dollar
The move up from 70 to 100 (First Chart) is much greater than from 100 back to 92 (Second Chart), but lets look longer term, from a fellow blogger and former chief economist, Scott Grannis…
Not only is the US Dollar not in trouble, over the long term it is still overvalued.
US Dollar in trouble? Nah, not a worry … still overvalued by many!
Have a Great “More Normal Dollar” Day!
John A. Kvale CFA, CFP