As the world grows smaller, currency, exchanges and movements to these become more interesting!
One of the most followed indexes worldwide is the DXY aka Dixie – A basket of currency holdings, broken out below.
Here is a two year chart of the DXY
From exports, imports, overseas production, international sales all the way down to International Vacation plans … These are all affected in one way or another by currency/FX/Exchange rates!
Drilling down to the US Dollar – While many theories, it has been very weak for the last year or so. When the US Dollar is weak, overseas currencies gain buying power in the form of higher value.
This one year chart, but for Japan, the chart shows the percentage loss in value over this term! Note these are USD/ each currency!
Now flipping the chart to the most common way it is quoted for two biggies – Euro/USD and Pound/USD – This chart going up, is once again showing the loss of value in the US Dollar, again because of the format quoted, it looks up side down !
Where are we going with this? International investments made in US Dollars have benefited greatly from the weaker Dollar!
A lot of charts… One chart, 1000 words or something like that!! Nice to have a toe in that investment pool!
Have a Great “Dixie/FX/Currency update” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the pie chart in format only. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
