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Essay: The terrible track record of forecasters predicting rapid de-dollarization and/or the imminent demise of the U.S. dollar (view source)
Revision as of 23:08, October 23, 2026
, October 23→In 2026, Euope's economic problems have made the Euro look weaker and raised the relative strength of the US dollar. The dollar had gained approximately 5% against the euro during 2026 and reached an 18-month high
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'''Key Drivers of 2026 Dollar Strength [https://www.google.com/search?q=was+2026+a+good+year+for+the+usd&oq=was+2026+a+good+year+for+the+usd&sourceid=chrome&ie=UTF-8]'''
• American Exceptionalism & AI Boom: Continued massive capital inflows into U.S. equities—driven by artificial intelligence enthusiasm and major initial public offerings (IPOs)—have supported continuous foreign demand for the greenback.
• Hawkish Federal Reserve: A shift in market expectations toward a tighter or more hawkish stance (including repricing around potential Fed rate paths under leadership like Kevin Warsh) kept U.S. yields attractive relative to peers.
• Growth Divergence: Stronger and more resilient U.S. economic performance compared to sluggish growth in the Eurozone and other major economies widened the growth gap in favor of the dollar.
• Geopolitical Safe-Haven Demand: Regional conflicts and energy market pressures periodically elevated safe-haven flows into U.S. assets.
== 2025: U.S. dollar typically weakens during trade negotiations. US Deputy Treasury Secretary Michael Faulkender said he expects “a lot more deals” ==
== 2025: U.S. dollar typically weakens during trade negotiations. US Deputy Treasury Secretary Michael Faulkender said he expects “a lot more deals” ==