The impact of the dollar dive

The value of the dollar has been in steady decline against other global currencies in recent years, in particular the euro and the Japanese yen, but how has this scenario affected credit investors? Saskia Scholtes reports

Over the past three to four years, the value of the US dollar has tumbled by nearly 40% against the euro and around 30% against the Japanese yen, a fall which has been largely driven by three factors: the ballooning US current account deficit, the imbalance between North American saving and consumption, and inflation-adjusted short-term interest rates in the US that have been significantly below those of other major economies.

But while the weaker dollar is likely to prompt US corporate bond