Interestingly, the trend can be explained entirely by valuation effects, with the trade-weighted dollar depreciating 4%% in that time frame.
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2.
The dollar may yet decline, but so far the major trade-weighted dollar indexes are about where they were before the financial crisis.
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3.
This is a weighted average of short-term interest rates, corporate-bond yields, share prices and the trade-weighted dollar, with the weights derived from the Fed's model.
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