There’s more to the dollar than meets the eye. Or maybe less.

As seen in The Oakland Press

March 15th, 2026

There’s more to the dollar than

meets the eye. Or maybe less.

by Ken Morris

On the drive to my office, I pass four gas stations. While it’s not uncommon to see daily price fluctuations, I don’t recall ever seeing any of the four stations changing prices in opposite directions. In other words, they all move up or they all move down. They’re in it together.

For me, gasoline price changes are a very public and apparent sign that price fluctuations are ubiquitous. And whether it’s at the pump, in a supermarket or anywhere else, we tend to view it simply as the price itself moving up or down. We measure any higher price as a cost increase. We never consider that perhaps the dollar fell in value. But often in the pricing of goods, the fluctuating dollar is part of the equation.

Over the last year, the U.S. Dollar Index has fallen about 8 percent. The Index measures the value of the dollar against a basket of currencies from other developed counties. It’s quite complex, but the important takeaway is that currencies fluctuate, including the dollar.

I don’t pretend to be an expert on the complexity of foreign currency exchanges, but I do understand that the dollar fluctuates. And that’s one of the reasons why the cost of some items increases or decreases.

Since the end of World War II, the dollar has been the world’s reserve currency. When nations trade among themselves, the transactions are made in dollars. I don’t think the dollar is in danger of losing its status as the world’s reserve currency, but it’s no longer as highly regarded as in years past. In fact, some foreign nations have been trading without converting the transaction into U.S. dollars.

Our enormous national debt and the ability to repay it is a significant reason why the dollar has lost some of its luster. The interest alone on that debt is one of our nation’s largest expenses. Uncle Sam’s non-stop printing press, flooding the world with dollars, is a real concern. The rapid price increase of gold, silver and other precious metals is evidence of that concern. Many individuals and banks are buying gold as a hedge against the dollar. Even cryptocurrencies are in play. The dollar is no longer the only game in town.

For years, I’ve been suggesting that investors should be diversified. I believe a well-diversified portfolio should include an allocation into foreign investments. And there is a wide selection of well-respected companies outside the U.S. from which to choose. In fact, there are even mutual funds and Exchange Traded Funds that offer global options. In recent years, the U.S. has been the place to invest. Today, however, many foreign investment opportunities are attracting attention.

We live in a world where prices frequently fluctuate. Keep in mind that, occasionally, a price increase is not simply an increase in prices. It could also be that the dollar is falling; losing a bit of its purchasing power as measured against other currencies.

It’s a complex financial world that for years exclusively used the U.S. dollar for transactions. Today, I suggest you think globally for a portion of your portfolio. When you review your allocation, take a look overseas. And, of course, a professional advisor can assist you in sorting through the multitude of choices.