The dollar continues to be a world currency and part of the global bloodstream. It is hard to imagine that it would be replaced in this role by any other fiat currency. At the same time, however, it has recently become cheaper to levels that have not been visible on the chart since March, the period when the current economic crisis was just beginning.
The dollar is the cheapest since March
Today, the US dollar paired with the euro hit its weakest levels since October 2018. It turns out that the Polish zloty also gains in relation to it. The dollar was paid for PLN 3.8159 today. This is the lowest price since March 11, when the coronavirus crisis slaughter of our currency began. Now only this week the USD / PLN exchange rate went down by PLN 0.10.
How is the euro doing? On Thursday morning, the rate of the European currency was at the level of PLN 4.4188. Earlier, its quotations fell to PLN 4.4139. It was the lowest value since June 4. From the beginning of the week, the EUR / PLN exchange rate decreased by 5.5 grosz.
The fate of the dollar
The cheaper dollar is something that Donald Trump and the US exporter may like. The president of the United States has long pressed, for example, the Fed to lower interest rates, which was supposed to lower the rate of” green ” .
Why would Trump depend on the cheap dollar? It’s easy. On the one hand, of course, politicians do not like their countries’ currencies cheaper, because propaganda does not look good in the eyes of voters. But a cheaper dollar will also make American products cost less, and this should stimulate exports. In other words, residents of other countries around the globe may be more likely to buy products with a “Made in USA” sticker, because they will become cheaper than they are today. This, in turn, will boost the American economy more, which may help Trump in his election success, as Americans will vote in the presidential election in the fall. The main rival of the current resident of the White House is Joe Biden.
So it is possible that the dollar will continue to decline. At least until the US election.