-weighted dollar and real bilateral rates against the dollar. However, taking these additional factors into account reduces the … estimated effects of interest rates on the dollar. An error-correction model that includes these factors explains about half of … the in-sample variation of changes in the real trade-weighted dollar and has out-of-sample prediction errors that are 60 …

This Economic Letter looks at the relationship among changes in the exchange rate value of the dollar and in import … the dollar at this point is affecting U.S. prices less than it has historically. The reasons for the difference include … years. Looking ahead, then, it appears likely that the recent dollar depreciation will have only very moderate effects on …