How the Falling Dollar Is Reshaping US Trade Balance

The US dollar has been weakening since early 2026, with the DXY index dropping below 101 for the first time in over a year. But contrary to textbook economics, the trade deficit hasn't narrowed — in fact, it's widened sharply. Lucas and Luna explore why the traditional relationship between currency and trade is breaking down. They discuss how a weaker dollar is raising import costs faster than it boosts export volumes, the role of global supply chain stickiness, and what this means for the US current account deficit. With the trade balance hitting a record -77.6 billion in May, they ask whether currency depreciation still works as a trade adjustment mechanism or if structural factors have changed the game. #USdollar #TradeDeficit #CurrencyDepreciation #ExportCompetitiveness #ImportPrices #DXY #FederalReserve #CurrentAccount #GlobalTrade #SupplyChain #Economics #FexingoBusiness #BusinessPodcast #TradeBalance #Macroeconomics #USExports #Imports #CurrencyWars Keep every episode free: buymeacoffee.com/fexingo