What a Weak Dollar Means in 2018: Staycations and Local Shopping
- U.S. consumers to feel pinch after currency’s 8 percent drop
- Greenback snaps 4-year winning streak, seen dropping further
Dollar Down vs. Euro Amid Tension in Money Markets
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U.S. consumers may soon begin to feel some pain from the dollar’s downturn, although the recent slide in the world’s main reserve currency isn’t bad news for everyone in America.
The greenback has dropped 8 percent in 2017 and is on track for its first annual decline in five years. It weakened after U.S. tax changes aimed at spurring growth were slow to materialize and lackluster inflation weighed on the longer-term trajectory for interest rates even as the Federal Reserve tightened policy. A more upbeat picture in other parts of the world such as Europe has also weighed on the U.S. currency, and many analysts predict further weakness ahead.