I have often written about the declining value of the dollar over time, as inflation (even a small amount) consistently erodes away at the dollar's purchasing power. One of my favorite charts below from Shadowstats shows this pretty clearly. The dollar's value does fluctuate with demand and can go up in the short run, but the long term trend has been consistently lower. Most recently, when the COVID-19 pandemic began and the world's financial markets were in turmoil, there was huge demand for dollars as a "safe haven," but then as massive fiscal and monetary stimulus was unveiled, the dollar started to drop again over inflation fears and that decline has accelerated recently. There have been many indicators of investors' concern about this, including the rise in value of precious metals, Bitcoin and the stock market. What's interesting is that the bond market so far has not shown any signs of inflation concerns, but I believe this has more to do with the Federal Reserve's purchasing of bonds, which artificially suppresses interest rates, as well as "safe haven" demand from investors who have reduced their exposure to the stock market.