U.S. Dollar Performance Against Major Currencies in 2024
In 2024, the U.S. dollar experienced significant depreciation against many major currencies, largely due to the Federal Reserve’s 0.5% interest rate cut in September—the first since the pandemic. Lower rates made the dollar less attractive compared to currencies from economies with higher rates.
By October 10, 2024, the dollar saw its sharpest declines against the Thai baht (-11.5%), Polish złoty (-11.4%), and Malaysian ringgit (-11.3%). It also dropped notably against the South African rand (-8.2%) and British pound (-8.1%).
However, the U.S. dollar appreciated strongly against the Turkish lira (+24.8%), Mexican peso (+13.1%), and Brazilian real (+8.3%), gaining ground in markets with weaker economic conditions or higher inflation rates.
Benefits:
Stronger Exports: U.S. goods become cheaper and more competitive globally, boosting export-driven industries like manufacturing and agriculture.
Tourism Growth: The weakened dollar attracts more foreign tourists, benefiting U.S. hotels, restaurants, and travel businesses.
Drawbacks:
Costly Foreign Travel: American tourists face higher expenses abroad, as the weakened dollar has less purchasing power in foreign countries.
Rising Import Prices: Imported goods and products made with foreign components become more expensive, increasing costs for consumers and businesses alike.
The overall performance reflects how currency fluctuations can create both opportunities and challenges, depending on market dynamics and trade relationships.
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