What the Decline of the Dollar Means
The International Monetary Fund said in June that it was cutting its forecast for the growth of the United States economy,
but stronger growth elsewhere would offset the impact on the world economy.
At the beginning of 2011, Mr. Paulsen noted recently, the interest rate on the benchmark 10-year Treasury note was a little
lower than the available return on a portfolio of debt issued by other major nations, including Britain, Germany and Japan.
The United States was “the cleanest shirt in the dirty laundry basket,” said Jim Paulsen,
chief investment strategist at the Leuthold Group, a Minneapolis investment firm.
Mr. Trump has said that he would like the dollar to decline in value.
The dollar strengthened after the presidential election because investors expected Mr. Trump
and congressional Republicans to increase domestic growth by fulfilling campaign promises to cut taxes and reduce regulations, among other measures.
The climb started in 2011 as the American economy began to recover more quickly than the economies of the rest of the developed world.
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