Trade Weighted U.S. Dollar Index: Major Currencies (DTWEXM)

The dollar has been losing its value against major currencies at 5.9% annual average rates from 1973 to 11/25/2016.

The dollar suddenly appreciates since Mr. Trump was elected as U.S. president.

Two reasons why the dollar gains against other major currencies:

The Fed expects to raise the fed fund rates in December.

Mr. Trump promises to cut the corporate tax from 35% to 10% if the U.S. companies bring the cash in the United States.

The U.S companies keep approximately $2.5 trillion dollars offshore. If U.S. companies bring the cash to the Unites States, then the dollar would stay strong. However, the dollar would depreciate in long run although it would stay strong in short run.

Analysis Variable : pctchng_DTWEXM

Mean

Std Dev

Minimum

Maximum

Sum

-0.0025624

0.7936155

-5.7326449

3.3371762

-5.8679193