TreeDoc

What could happen to the USD if interest rates are kept low

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TreeDoc Updated   
TVC:DXY   U.S. Dollar Index
There are a number of non-financial motives in the USA to keep the interest rates artificially low. The election is the primary one. The incumbent President will find it supportive to ensure that the large cap indexes high and the debt payments of the public manageable, at least to past the election date.

Also should the trade war with China continue to sap the world economies, there will be a race to the bottom for the currencies.

i don't think this picture of the DXY is too far exaggerated under the current circumstances, and if nothing changes.
Trade active:
Trump's trade war with China is going badly. Beijing has now escalated the war to forex as well, devaluing the Yuan to make their exports competitive no matter what arbitrary tariffs Trump slaps on. Only response left to US is to reduce the interest rates to devalue their own currency. Trump already stepping up the war of words on the Fed. Expectations alone are already driving DXY down.
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