US dollar dip hides its strength

The US dollar has dipped in value due to economic cooling, geopolitical issues and trade tariffs. However, Vanguard’s analysis highlights that the currency has returned to its fair value; a weakening US dollar does not mean a weak US dollar. UK investors have felt the impact of the US dollar’s fall, previously benefiting from a strong currency and equity market; a fair-value dollar and expensive stocks may now limit future returns. The decline in value has generated new interest in currency hedging to reduce short-term volatility, although long-term costs can hinder investors. Learn more...