The U.S. dollar could be in a decade-long decline, analysts say

Nazanin Tabatabaee | West Asia News Agency | Reuters

The dollar has entered a downward cycle it may not crawl out of for a decade.

The dollar has been weakening since spiking in March, and strategists say its downward slide was reinforced last week when Fed Chairman Jerome Powell announced a new policy of average interest rate targeting. That policy would allow the Fed to keep interest rates at zero, even if inflation temporarily rises above its 2% target.

Low rates can mean a weaker dollar, and that’s generally viewed as a positive for exporters, who see the benefits of more competitive pricing for their products. It’s also considered a positive for the stock market, since so many companies have foreign revenues, but it can be a double-edged sword if it weakens too much, making commodities and imports pricier.

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