jaichind
Atlas Star
Posts: 27,658
Political Matrix E: 9.03, S: -5.39
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« on: June 05, 2015, 07:55:58 AM » |
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I actually do not think the USD is too strong. Looking at the U.S. Dollar Index(USDX) which averaging the exchange rates between the USD and major world currencies., the current levels of this index (around 96) is for sure pretty high compared to the 2005-2013 period when it was jumping around 80. But the current levels are about the same as 2003. It is much lower than the 2000-2002 period when it was jumping around 115. 96 is about where it was during the 1987-1994 and 1997-2000 period. Given the relative weakness of other advance economies and the fact some emerging economies are coming down to earth the USD is not that strong in my view.
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