The dollar is experiencing a period of strong falls: is it temporary or a crisis that will last over time?
Periodista Portafolio 02.14.2026 18:51 Updated: 02.14.2026 18:51
TL;DR
- The US dollar has lost nearly 10% since Donald Trump's inauguration.
- Factors influencing the fall include trade tensions, Federal Reserve pressures, and changing monetary policy expectations.
- A weaker dollar can benefit US exporters and multinational corporations' foreign earnings.
- However, it can also make US assets less attractive and increase import costs, potentially leading to inflation.
- International markets, including Europe, Japan, and Brazil, have seen stronger gains than the S&P 500 when adjusted for dollar depreciation.
- While historically dollar fluctuations have had a weak correlation with US corporate profit growth, sharp movements can impact investment decisions.
- The current weakness occurs amidst mixed signals from the administration regarding currency policy.