The dollar is trading at its lowest level in more than a year, after a series of losses that sparked controversy about the continuity of its status as a global trade and reserve currency, especially with the use of currencies other than the dollar in bilateral trade agreements.
The weak dollar reflects positively on developing countries by reducing the cost of imports, which helps relieve inflationary pressures for these countries. On the other hand, the decline in the dollar enhances the exports of US companies at the expense of their counterparts in Europe and Asia.
Investors expect the US currency to continue its decline with the approaching end of the monetary tightening cycle by the Federal Reserve, prompting many analysts to increase their expectations for the gains of other currencies such as the Australian and New Zealand dollars and the Norwegian krone.
