Compared to what? From Nov 3, 2024: the USD against:
GBP (3)%
JPY (1.7)%
EUR (6.7)%
INR 4.6%
AUD 1.3%
CAD .74%
RMB .4%
The EUR (if that is what you are going by) is unusually strong, and that's actually starting to cause issues. But the dollar isn't "collapsing".
> Compared to what?
In terms of the DXY "US Dollar Index"
The entire goal of the tariffs were to weaken the dollar:
> The Mar-a-Lago Accord is a proposed economic and trade initiative of the Donald Trump administration during his second term. Named after Trump's Mar-a-Lago estate in Florida, the Accord is a blueprint for restructuring global trade and monetary relations. Its core goal is to devalue the dollar while preserving its role as the world reserve currency, a careful balancing act intended to avoid the contradictions described in the Triffin paradox.
But yes: weaking the dollar was the goal, but the US did not achieve that to the degree of something like the Plaza accords.
What is insane is to assume republicans picked by Trump will restrain Trump. The adults in the room theory was disproven long before that election.
Trump 1.0 had tarriffs. Trump talked abput tarrifs. People in fact assumed Trump will do tarriffs, they just slightly underestimated how bad the trade war will be.
The truth is, the currency markets are roughly where they were about a year ago, with the exception of EUR, but thats a special case which I think is a symbol if a misstep by the ECB.
I'm not sure why your hand-picked list of currencies is revelant, or why your particular dates are relevant. The course for the future looks to be a greater devaluation of the US currency.
This is the goal of the Trump administration and what is apparent to analysts.
What other currencies do you believe are important? We pulled 2-5 of the most commonly used reserve currencies and some other ones as well.
By what standards? It’s slightly above the trend (i.e. continuous decline since 2008 with an occasional up and down here and the) but not that substantially
It's why you see Lagarde calling for a reserve EUR; it's the only way to export EUR at this point. But that's a topic for another time.
Yes; this is a short term perspective. Europe is functionally an export market and these currency fluctuations hurt badly. For example, Mercedes-Benz had a consolidated profit margin in '22 of around 9%. These swings do either force loss of jobs (bad) or require a devaluation of the currency.4
