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Economic Commentary

The Dollar in the Eighties

Since mid-1980, the dollar has experienced an unprecedented appreciation in foreign-exchange markets. On a trade-weighted basis, the dollar appreciated 77 percent from its low in mid- 1980 to its most recent peak in February 1985. The sharp appreciation of the dollar put U.S. trade-related industries at a competitive disadvantage in world markets and contributed to the record $107 billion trade deficit in 1984. The dollar has since depreciated by approximately 11 percent, but remains high.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Humpage, Owen F., and Nicholas V. Karamouzis. 1985. “The Dollar in the Eighties.” Federal Reserve Bank of Cleveland, Economic Commentary 9/1/1985.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International