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What Happens if the Value of the U.S. Dollar Continues to Decrease?

What Happens if the Value of the U.S. Dollar Continues to Decrease?

June 10, 2021
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There is a level of support to prevent the U.S. Dollar from decreasing too much. As U.S. goods become cheaper relative to other countries' currencies the export of U.S. goods will become more attractive. This results in U.S. economic growth that further attracts foreign investors and strengthens the dollar out of supply and demand.

The dollar is in such high demand globally that any drop would quickly be taken advantage of thus pushing the value back up. The only factor that could change this is if foreign investors decide they no longer like U.S. dollars and prefer another currency. Considering how entrenched the U.S. Dollar is in global business, this is highly improbable.

In the long run, we are not concerned and you shouldn't be either. Let us know if you have questions about anything we've discussed!

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