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Why the Weakening US Dollar?
Cengage
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By Nivine Richie

This Financial Times video shows that the US dollar (USD) has been declining significantly this year, but the reason for the decline is not straightforward. The video offers one possible reason for the weak dollar: the Fed's low probability of raising interest rates.

From Reuters:

The dollar plumbed its lows of the day after the release of the Fed’s November meeting minutes showed policymakers were concerned about inflation, which has remained subdued.

“Some people in the market obviously took that as a sign of dovishness on some policymakers (behalf),” said Thierry Wizman, global interest rates and currencies strategist at Macquarie Limited.

(read the full article here)

 

For discussion:

The video also shows that the weak dollar is moving in tandem with the price of gold. Why would that be the case?