How Far Will the Dollar Appreciate?
Due to financial stress and lack of recovery in Europe and Japan, and a decline in the fortunes of commodity exporting countries the dollar is rising above other currencies. It typically has traded between 70 to 90 points in the past 10 years and is now at 90 points for the DXY indicator.
In the early 1980’s it went up, from after trading in the 85 to 100 range, to 162 because our interest rates were much higher than other countries.
Part of the reason the DXY went up so much in the 1980’s was because of the “money illusion” …
Read More