Dollar Loses Less Under Obama than Under George W. Bush


Despite annual deficits topping a trillion dollars, a slow recovery, a high unemployment rate and trillions in freshly created dollars from the Federal Reserve’s printing press (now with the new open ended model), the US dollar is not doing so bad under the 44th President of the US.

So far during the Obama’s term, the US Dollar Index slid from 83.6 (January 19th 2009) to 79.5 at the time of writing, September 20th 2012 – around 5% in 3 years and 8 months. Not too good, yet the previous period was far worse for the greenback:

During the period of George W. Bush, the US dollar Index slid from roughly 110 to 83.6 – a drop of around 24% in 8 years. Even when taking the difference in time periods, it is clear to see that the dollar lost less during the Obama than under Bush.

This can be seen on the chart:

US Dollar Index Obama Bush

US Dollar Index Comparing Obama and Bush – Click image to enlarge

The high line is the value when George W. Bush entered office, the middle line is when Obama came into power and the lower line is the value at the time of writing, September 20th 2012.

Needless to say, a lot of things happened in the US, in Europe, in China and everywhere during all these years. There are many factors moving the greenback, with central banks having a lot of impact on currencies. However, it is interesting to note that when looking back to history, there is a clear difference between the dollar’s performance under Democratic presidents and Republican ones.

A stronger dollar is important for keeping the dollar as a reserve currency, something that has been questioned various times in recent years. On the other hand, a weaker dollar is better for US exports. So, there are advantages and disadvantages anyway you look at it.

The value of the dollar isn’t a hot topic in presidential elections. Should it be?

Further reading: Dollar’s demise gathers pace

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.


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  2. Hey Yohay, now I’m worried about you. (o: Let’s not give those trying to get re-elected to office another spin that has nothing to do with anything he’s done, and give the those in society with ‘no clue’ a reason to vote for him. Besides, and I know you know this, go on to any of the top economics websites that have the top economic minds from around the world and you can see that almost no one agrees with anything. That has always worried me; it the top economic professors from around the world can’t agree on anything, what are the odds that when a president gets in office and pics his (who do I owe) economic advisor that he or she will know what they’re doing? I’m thinking we have better odds of closing our eyes and clicking our mouse and then opening them to see whether we are long or short. Keep up the fine work!

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