The US dollar breaks key support today on the futures chart (broke below 90), although still holding 90 on the regular chart, barely. Once 90 is definitely broken, the next support level is way down at 85 and then 80. So not good for the buck. With the Fed raising interest rates the dollar should be stable or rising.
On the bright side, a weaker dollar should take some pressure off China's need for devaluing the yuan, as it makes it easier for them to maintain the yuan/dollar peg.
But on the ominous side, Rickards said that on Jan 1st the IMF instituted a mechanism by which foreign countries can start converting their dollars into SDRs. That could explain the dollar's weakness in the face of Fed tightening, and could be part of the reason the Fed is so keen on raising rates - to ameliorate dollar weakness as they transition countries away from the dollar and into the SDR system.
