A weakening US dollar is good news for markets – but will it continue?

The US dollar – the most important currency in the world – is on the slide. And that's good news for the stockmarket rally. John Stepek looks at what could derail things.

US dollar bill and 1 euro coin
Everyone needs US dollars
(Image credit: © Gerard Bottino/SOPA Images/LightRocket via Getty Images)

As we’ve said many times before in Money Morning, the US dollar is one of the most important – if not the most important – prices in the world.

Right now, the US dollar is on the slide. That’s good news, for reasons we’ll reiterate in a moment. A falling US dollar keeps the “reflation” trade intact and means asset prices are likely to keep rising.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.