Dollar dominance fades
In the last two years, the US Dollar has been the hottest thing on the currency markets.
Pegging values to the start of 2021, at its peak the US Dollar had made gains of 27%, 28% and 46% against the major currency pairs of the Euro, British Pound and Japanese Yen, respectively. But in the last 4 months, the greenback has started to slide, giving back roughly half of its gains made against each currency, as investors anticipated that US inflation had likely peaked.
In some ways, you can argue that this news is almost of less consequence for Americans than it is for everyone else. Many of the world's global commodities such as food and fuel are often denominated in USD, as is much of the international debt market. Hence, when USD gets stronger, the relative prices of those goods, or interest payments, goes up too. A slight weakening of the dollar has likely been welcomed by many in recent months.
