Predicting the direction of the dollar, or any currency, can be a daunting task, even for professionals who specialize in it. One thing we can provide is some context.
As indicated in the chart, as of 2/28/23, the U.S. Dollar Index (DXY) remained elevated when compared to the 10-, 20-, and 30-year averages. If the dollar were to start falling, this could boost international investments – something we’re keeping an eye on. From a currency exchange standpoint, now may also be an ideal time to travel abroad as your dollar will stretch further.
A Snapshot of the US Dollar Index
March 15, 2023