The Journal. The Dollar Is Weaker. Is That a Good Thing?
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Feb 3, 2026 
Greg Ip, chief economics commentator at The Wall Street Journal, breaks down what a weaker dollar actually means and why it matters. He discusses drivers like policy, tariffs, and sentiment. He explores how a lower dollar can help exporters, fuel inflation for consumers, affect commodity prices and Treasuries, and why the dollar likely remains dominant despite challenges.
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What 'Dollar Weakness' Actually Means
- A weak dollar means its exchange rate has fallen versus other currencies like the euro and yen.
- The decline can reflect financial, economic, policy factors or simply market sentiment.
Reserve Currency Implies Global Responsibility
- The dollar's reserve role creates a U.S. responsibility to keep it stable for global trust.
- That responsibility includes avoiding policies that would arbitrarily erode purchasing power, like high inflation.
When The Dollar Started Sliding
- Greg Ip recounts that around March or April 2025 the dollar stopped rising and began trending down.
- The Bloomberg dollar index hit levels not seen since December 2023, down over 8% year-to-date.