Dollar Index Continues Its Ascent Despite Surging Inflation
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Despite the steady growth in inflation over the last two years, the dollar index—a weighted average of the international value of the U.S. dollar compared to a basket of other currencies—continues to rise in line with inflation. In general, the dollar index should decline with large inflation. If the dollar is worth less in the U.S., it tends to be worth less when traded for other currencies. For example, when Venezuela started seeing hyperinflation beginning in 2012, its value against the dollar plummeted.
Dollar Index Continues Its Ascent Despite Surging Inflation
Dollar Index Continues Its Ascent Despite…
Dollar Index Continues Its Ascent Despite Surging Inflation
Despite the steady growth in inflation over the last two years, the dollar index—a weighted average of the international value of the U.S. dollar compared to a basket of other currencies—continues to rise in line with inflation. In general, the dollar index should decline with large inflation. If the dollar is worth less in the U.S., it tends to be worth less when traded for other currencies. For example, when Venezuela started seeing hyperinflation beginning in 2012, its value against the dollar plummeted.