Why The Dollar Is About to Get Stronger

Is the weakness in the dollar a problem for the Fed? All else being equal a weaker currency should cause inflation pressure, as foreign goods are now more expensive for local consumers/companies to purchase. Indeed, in its simplest terms, inflation is the decline in value of a currency. The flip side of prices generally rising is that your currency can't buy as many goods as it could before. When we say a currency has "weakened" we are saying it can't buy as much in foreign currency as it did before! However, I think the dollar has fallen for completely different reasons, and indeed reasons that probably can't persist for much longer.

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