Relationship between US dollar index and Inflation (CPI)?
Hi,
I am a complete newbie, but I am trying to study and learn more about economics and investing. I was wondering what the relationship was between the strength of the US dollar and the Consumer Price Index. I have plotted them together and I don't see anything off the bat. Shouldn't the strength of the dollar go down if people are paying more for the same good? Or is it just because all the other currencies are also going through inflation too so it all cancels out? Any thoughts?
Thanks,
I am a complete newbie, but I am trying to study and learn more about economics and investing. I was wondering what the relationship was between the strength of the US dollar and the Consumer Price Index. I have plotted them together and I don't see anything off the bat. Shouldn't the strength of the dollar go down if people are paying more for the same good? Or is it just because all the other currencies are also going through inflation too so it all cancels out? Any thoughts?
Thanks,
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