This week we will discuss the (DXY) a.k.a the US Dollar Index.
Part One –
Please research and familiarize yourself with the US Dollar Index.
Explain:
a) What is the US Dollar Index is,
b) What is it weighted against,
c) Why do we have it and why is it important,
Part Two –
1. What conditions usually lead to a strong Dollar Index, and why is this beneficial to the US but not beneficial the rest of the world.
2. What conditions usually lead to a weak Dollar Index, and why is this not beneficial to the US but is beneficial to the rest of the world.
Part Three –
“Excluding a major economic crisis”, why would it be important for the United States to prioritize a weak Dollar Index, even if it often leads to yearly trade deficits?
