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Dollar on track for steepest annual drop for almost a decade

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According to a recently published article in the Financial Times, the "US dollar is heading for its steepest annual drop since 2017, with Wall Street banks predicting further weakness next year as the Federal Reserve presses ahead with interest rate cuts.

The greenback has slumped 9.6 per cent against a basket of major currencies this year, after US President Donald Trump’s trade war sparked fears for the world’s biggest economy and cast doubt over the dollar’s traditional status as a haven for investors."

 

"This has been one of the worst years for dollar performance in the history of free-floating exchange rates,” said George Saravelos, global head of FX research at Deutsche Bank."

 

The US dollar has lost ground against all major currencies except the Japanese yen, whose value has remained essentially unchanged since the start of Trump's second term. The Thai baht has also seen its value rise 7.6% against the dollar over the same period.

 

"While the dollar stabilised after the “liberation day” turbulence, analysts said Trump’s chaotic policymaking had prompted foreign investors to start hedging their exposure to the dollar when buying US stocks.

The weakness in the dollar had been driven in part by a “structural reassessment of unhedged dollar exposures by global investors, particularly in Europe”, said Deutsche Bank’s Saravelos. Putting on the hedges, which investors do through derivative trades, exerts downward pressure on the dollar."

 

253012 USD.jpg

253012 FT USD.jpg

26 minutes ago, AndreasHG said:

Wall Street banks predicting further weakness next year as the Federal Reserve presses ahead with interest rate cuts.

 

Actually the FED has made clear that they don't fancy more rate cuts because of too much uncertainty, but Trump is putting his own man on the chair, and has said that he who wants to cut rates will be the man.

He recently installed Midan, who says he doesn't listen to Trump's comments, but it is too obvious he does from his recent comments.

 

Trump also wants to fire more governors, including Powell, and replace them with his ass lickers to set the FED decisions to his hand.

This is gonna be a disaster

I'm no economist but doesn't cutting interest rates take some pressure of US borrowers so for his home population and businesses it might feel like an improvement.?

Then of course a cheaper dollar on global markets makes purchase of US products and services more attractive so again to the audience at home there's a bit of stimulation of the economy.

It's a tricky tightrope to walk however and much like quantitative easing devalues the currency so US debt on world bond markets becomes more expensive to fund in the long run and is essentially destructive? 

BRIC replacing

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This was a clear part of Trump's plan so I guess you can call it a win.

 

Trump’s Misguided Plan to Weaken the Dollar | Harvard Kennedy School

www.hks.harvard.edu/centers/mrcbg/programs/growthpolicy/trumps-misguided-plan-weaken-dollar


 

Quote

 

May 6, 2025, Opinion: "The so-called Mar-a-Lago Accord, proposed by Council of Economic Advisers Chair Stephen Miran, aims to reduce the United States’ current-account deficit by weakening the dollar. But this plan is based on a deeply flawed understanding of the relationship between the dollar’s global status and US deindustrialization."


 

Expats -- ENJOY.

Expats who voted for him, are you tired of all the winning yet?

 

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Biden will be blamed , according to Donald 🤡

 

regards worgeordie

To be clear, I don't think that good citizens should vote only based on economic self interest. Ideally, we should vote based on what's best for the country even if it costs us. I understand not everyone is in a position to care about anything else though.

But the TRUMP weak dollar policy not only hurts expats, it was a mistake.

Congratulations!

Thank you for your attention to this matter. JT

18 minutes ago, 3NUMBAS said:

BRIC replacing

 

Yep. The world is changing. The west is done. 

Screenshot_20251230-2144472.png.8cebfc0318292f552a970ba0712f3839.png

Nothing like cherry picking ... "almost a decade"

Down now about 7.3 % since inauguration, USD / THB

Don't pick Bush 2's administration, down about 33 %

... 2001: High of around 44.49 THB per USD

... 2008: rate dropped to around 29.649 THB per USD

Obama ... high of 35.7368 to 29 low... about 19 %

The dollar has depreciated @~90% over the last sixty some odd years.

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