Dollar Off to Rough Start in 2023

The video discusses the persistent weakness of the dollar, which has been ongoing for several weeks. This downturn began late last year, marking a significant shift from the previous year's dollar strength. The current dollar weakness affects asset returns, risk, and portfolio positioning. There are predictions of further weakness, especially against the euro and emerging market currencies, which could alter risk profiles significantly.

What marked the shift from dollar strength to dollar weakness?

• A downturn that started late last year

• A rise in inflation rates

• A change in global trade policies

• An increase in interest rates

Which currencies are expected to strengthen against the dollar according to current predictions?

• Euro and some emerging market currencies

• Canadian Dollar and Swiss Franc

• Australian Dollar and Indian Rupee

• British Pound and Japanese Yen

How might the persistent dollar weakness affect investors?

• It could lead to higher interest rates

• It might increase inflation

• It could change the risk profile dramatically

• It might stabilize the stock market