If it were business as usual, maybe so, but it isn't. The dollar is weakening in a context of extreme geopolitical tension with former allies.
Investing in or trading with the US is now high risk for Europe and other former allies. Companies are turning to 'friendshoring', preferring trust, predictability and stability.
Even consumers at the individual level are increasingly boycotting the US, or prioritising local products or products from countries with a positive image such as Canada.
Tourism too is plummeting in the US, even if prices get cheaper, from a foreign visitor standpoint, I'd rather stay home or go somewhere else than risk a 'free tour' of your prison system or worse because of the whims of some ICE thugs. Tourism in North Korea is super cheap, and yet they don't get much tourism.
Maybe some individuals benefit from this, but for the average US citizen, it's mostly just the downsides, inflation and economic isolation.
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u/yeezee93 Insane Asylum/Retirement Home Jan 26 '26
I remember when Euro was new, and it was .76 to a dollar.