Dollar's Depreciation Sparks Concerns Over U.S. Trade, Prices, and Interest Rates
The value of the dollar has been dropping since 2002, with a shift in the reason for the decline in 2006. Initially, it was due to increased U.S. spending, but later it was because international investors were moving their money away from the dollar. This change can impact the U.S. economy in terms of trade, prices, and interest rates. The prolonged drop in the dollar's value is leading to questions about how it will affect U.S. monetary policy and what actions should be taken in response.