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The dollar will only depreciate if interest rates in other countries/currencies are higher, right? What leads you to believe interest rates in the US will be s
by joncrane 6y ago
The dollar will only depreciate if interest rates in other countries/currencies are higher, right? What leads you to believe interest rates in the US will be significantly lower than in other countries?
- gridlockd 6y agoThat's not true, there are various factors that determine currency valuation. You can have high interest rates, but if the market believes you are going to increase the money supply, that may not be enough to stop depreciation. That's why debt monetization through QE without QT is such a dangerous game. Interest rates in the US right now are higher in the Eurozone, yet the dollar has depreciated against the Euro. Lastly, while it is possible that the dollar will not depreciate against other currencies, currencies will still depreciate against assets.