Will The Dollar Collapse?

Will The Dollar Collapse?

Will the Dollar Collapse?





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We've once again reached that point in the cycle where the dollar has started to decline. As a result, the doomsayers have come out of the woodwork. And it's really no wonder. The headlines have a lot to say about the dollar's downward movement in recent months, as it has certainly dropped in value from March 2020 to present. But while the dollar is down from its recent peak, it is still above the levels we saw through most of 2019 (which, remember, was a good year). So, do we need to worry about the risk of its collapse?



Dollar Spiked When Pandemic Hit



The real story here is not the dollar's recent decline. Instead, it is the spike in the dollar's value when the pandemic hit around the globe in March. Why? Everyone wanted dollars when risks started to rise, which is why the value went up. The decline since then has everything to do with things looking less risky in the rest of the world“”and nothing to do with the U.S. looking shaky. If anything, the dollar in 2020 shows just how much of a commanding position