Dollar Weakness, or Dollar Crash?

• Dollar has depreciated 10% since March. 
• Don’t expect this or the next administration to talk up the Dollar. 
• Central bank Dollar holdings reach new record. 

The Dollar has shown weakness during the second and third quarters, with the trade-weighted Dollar Index (DXY) falling from a high of almost 103 in March to a low of 92 at the end of August. The Dollar’s decline was even slightly more pronounced against the Euro: it fell from a high of 1.08 on March 23^rd to a low of 1.20 on September 1^st. These moves correspond roughly to a 10% depreciation of the Dollar. 

Political implications