Further dollar weakness may be path of least resistance

Although the US dollar has strengthened a little this week, it is about 2% weaker on a trade-weighted basis since the US elections three weeks ago. And it is now weaker in trade-weighted terms than it was at the start of the COVID-19 pandemic. (See Chart 1.) We expect that the greenback will continue to depreciate over the next couple of years.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.