"Dollar depreciation" refers to the decline in value of the U.S. dollar in comparison to other currencies. This means that you would need more dollars to buy the same amount of goods or services from other countries.
Full definition
If
dollar depreciation of this magnitude was not expected, investors would prefer dollar assets to foreign assets, given the interest rate differentials.
In our equity portfolios, we will therefore continue to steer clear of European companies that are exposed to both
further dollar depreciation and the growth - trend reversal signalled by any number of leading economic indicators.
Foreigners provided a large portion of the capital that fueled the runup in asset prices, so they will undoubtedly bear a good portion of the subsequent losses
through dollar depreciation and writeoffs in the value of their U.S. financial assets.
Weaker - than - expected US economic data has also contributed to
dollar depreciation, especially when compared to Europe and parts of emerging markets, says Morgan Stanley.
U.S. officials believe that
dollar depreciation will help their exporters, especially in the aircraft and other military - industrial sector.
This should inevitably benefit oil and gas demand & prices — whether it reflects a liquidity phenomenon,
a dollar depreciation, accelerating inflation, and / or simply a scramble for real assets.
As it is, rates will be near the zero bound for a long - ish time, unless we get a spate of inflation due to
dollar depreciation.
The actions of foreign nations lend themselves to
dollar depreciation.
One thing for sure, this will all get funded by the US taxpayers, together with those who lend to the US (
dollar depreciation).
«If I thought I was in a strong cycle of
dollar depreciation, I wouldn't have any hedge,» she says.