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Long-Term Negative Relationship between Inflation and the US Dollar

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Long-term negative relationship between inflation and the #USDollar | #ChartOfTheDay #Markets

 

  • Looking over almost three decades, we can see a negative correlation of 45%
  • Big moves in inflation lead to opposite moves in the exchange rate
  • Hence, when inflation increases, the US Dollar has mainly depreciated and vice versa

 

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Posted in Chart of the Day