The dollar will begin to weaken sharply in the second half of 2023 and its decline will benefit the global economy as it will help to overcome rising inflation. In this respect informs Bloomberg agency.
Some of the world’s leading investors are betting on a weaker US dollar. In their view, the rally in the US currency is largely over: the dollar is weakening as the main cycle of raising interest rates by the US Federal Reserve is over. The publication pointed out that other national currencies will strengthen as regulators in other countries continue to tighten their monetary policy.
Market experts agreed that the yen and euro have already strengthened by 11% or more compared to last fall’s decline, while the British pound is up 15.7%. At the same time, this situation benefits the global economy as import prices for developing countries will decrease. As a result, global inflation will slow down.
Analysts believe that the tight monetary policy in the United States last year led to the strengthening of the dollar and higher food and raw material prices in the world. However, the highest values of the dollar are already behind. Also, other economies around the world are slowly starting to catch up with the US, so the US currency will continue to weaken.
At the end of January, Business Insider WroteIt was stated that the dominance of the dollar in world trade is under threat due to five projects developed simultaneously in Asia, the Middle East and Latin America.