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E.Central MN | If investors decide that they aren't worried about a world economic crisis or covid, etc, then they'll take the money they invested in US investments/treasury bills/etc as a safe haven, and they will return to making investments where they think they can get a better return. If those investments are outside the US then they will need to exchange US dollars for the currency of the country they are investing in. When more people are trying to trade dollars for another currency then the currency traders will ask a higher premium for their currency, ie, they will want more dollars to get something else so the dollar's purchasing power goes down relative to the other currency. | |
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US dollar is breaking down.
