The U.S. dollar dropped to a ten-month low on Friday, falling in value against its major trading partners.
A declining dollar is both a blessing and a curse, depending on your viewpoint. For people who are travelling or buying foreign goods, a lower dollar makes foreign prices feel higher. But, for industries that are dependent on exporting goods to foreigners, like agriculture, manufacturing, or technology companies, the lower dollar makes U.S. goods cheaper on the global market, increasing demand.
The dollar fell after the U.S. Federal Reserve indicated plans to increase interest rates only gradually, which would keep them low for years to come. This should encourage a healthy level of inflation, but would also disappoint currency investors who are shifting money towards currencies with higher interest rates.