Long-Term Negative Relationship Between Inflation And The US Dollar

 

  • Looking over almost three decades, we can see a negative correlation of 45%
  • Big moves in inflation lead to opposite moves in the exchange rate
  • Hence, when inflation increases, the US Dollar has mainly depreciated and vice versa
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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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