Great review of dollar value since 1971

One of the better FX commentators on Seeking Alpha published a great piece on the dollar’s history since 1971 and where his team sees it going in the intermediate term.

This chart is key to the post

Key to the intermediate future, quote: “Yellen inherits a dollar policy that is in disrepair. Trump repeatedly tried talking the dollar lower. That the impact was minimal is beside the point. If the Biden administration wants to demonstrate that the defection from the international order that the US was instrumental in building and extending was an anomaly, it cannot simply articulate a new dollar policy. It must embrace the G7 and G20 position that it previously insisted upon and re-commit to the arms control arrangement, under which markets determine exchange rates. Recognizing that floating exchange rates often mean volatile exchange rates, excessive volatility needs to be avoided.”

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