[nkurz]

One common way of measuring the strength of the dollar is to compare it to a "basket of currencies": https://www.investopedia.com/terms/u/usdx.asp

By this standard, the US dollar is down about 10% from its post-COVID crash high (103 -> 93). But over a longer time scale, it's up about 10% from where it spent most of the 2000's: https://www.marketwatch.com/investing/index/dxy/charts.

So I think the answer both "yes, the dollar is signicantly weakening" and "the dollar is still slightly stronger than its recent historical norm".

[ericmay]

Yea great info to share. Thanks for that!

I’m wondering if that describes this scenario: there aren’t enough dollars, there is high demand for them, but as they get printed they go into securities.

What do you think?

[nkurz]

I don't feel I understand well enough to offer much of an opinion, but I think that captures a lot of it. An important addendum might be that a lot of foreign debt is dollar denominated, which means that dollars are often required even to service debt that is not US originated. In my amateur opinion, this is a good primer: https://www.lynalden.com/global-dollar-short-squeeze/