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There are two ways to interpret the currency exchange rate data that shows a currency’s relative strength versus the dollar.
First, it shows that a country’s economy is growing at an average rate of 4.7% annually, and that its inflation rate has been at or below 2%.
The other way to interpret it is that a currency is in a stable state of decline relative to the dollar, and a currency that has depreciated more than 10% in the last three years.
In that case, the dollar has lost value more than 20%.
It’s a complicated situation, and it’s not entirely clear how the market will react.
But the trend lines for the euro, for example, are more or less consistent with that of the dollar’s.
And the two currencies are currently trading in opposite directions.
The euro’s value is up about 9% against the dollar over the past six months, and the dollar is up almost 20%.
That’s because the euro is weaker relative to its dollar equivalent.
It’s also because the dollar remains a much more attractive store of value relative to other currencies.
In the end, the euro and the euro denominated in dollars will likely remain the dominant global currency, and perhaps for a while, the only global currency.
But for the foreseeable future, it may be the last global currency that will be.
The next chart is from Bloomberg.
It shows the relative strength of the currencies’ exchange rates relative to each other for the past two years.
The blue line is the same for the dollar and the green line is for the yen.
The green line indicates a positive correlation between the dollar rate and the currency’s exchange rate, which is a measure of its purchasing power relative to a basket of currencies.
As the chart shows, the yen’s exchange value is rising faster than the dollar against currencies with similar purchasing power.
The trend lines indicate that a weaker yen is likely to drive down the dollar relative to these currencies, while the yen is more likely to lead the dollar down against currencies whose currencies are more attractive.
So, while it’s true that the euro may have lost its value more quickly relative to others in the past, that trend has diminished as the euro has become more attractive relative to those currencies.
For now, that’s the dominant trend.
But in the future, that could change.
What’s the upside?
The downside to the relative weakening of the euro relative to all other currencies is that the dollar will likely continue to dominate global currency markets for a long time to come.
For the euro’s future, there is some hope that it could be able to recover its relative strength against the yen and other emerging market currencies, and thus offset the impact of the yen from falling in value relative, as it has in recent months.
But it will be quite a while before that can happen.
