The U.S. dollar has been on a steady downward path this year. The dollar index, which tracks the greenback against a basket of six currencies including the euro, yen and British pound, has lost over 7 percent since January, near the 2008 crisis lows. According to Deutsche Bank, when adjusted for inflation, the index is at a post-gold standard low.
America's top policymakers have repeatedly stood by their calls for a strong dollar. Just last week, Treasury Secretary Timothy Geithner said a strong U.S. dollar was in the country's best interests, and that policymakers would "never embrace a strategy of trying to weaken our currency to gain economic advantage at the expense of our trading partners."
Fed chief Ben Bernanke, in his first post-FOMC speech said he wants a strong currency, even as the Fed left rates near zero and pledged to leave them low for some time.
But those low rates have helped to fuel the dollar's decline, and in turn pushed up gains in other asset classes as investors chased higher yields. Gold and silver prices are trading near record highs, oil prices have stayed well supported above $100 and the U.S. stock market has been going from strength to strength.
Plus, a lower greenback may not be all that bad because a cheaper currency helps American exports, and the U.S. recovery.
Is a stronger U.S. dollar, then, really in the best interest of the U.S. economy? We want to hear what you think about what policymakers really want.
Have your say.