The US can buy dollars for about 1 per an hour, the equivalent of one dollar at 1.3 cents per US dollar, a study by US-based consulting firm Edelman found.
It also said the US exchange rate could be worth about 1.5 per cent by 2020, a figure that would be about half of the rate at which it trades for the rest of the world.
Key points:Edelman says US exchange rates could be $US1.2 trillion a year higher by 2020 and the difference could be the difference between buying and selling US dollars at 1 per US centThe US currency is the US dollar with an exchange rate of one per cent.
“In other words, US dollars could be valued at less than 1 per cents by 2020,” the report said.
The report was released as the US Federal Reserve announced that it will be raising interest rates by an average of 2 per cent from December 1.
“I think it’s a pretty big shift,” said Scott Batson, a senior economist at Edelman.
The US dollar has fallen sharply since hitting its peak in 2008, hitting a low of $1.2675 on December 3.
However, it has since climbed to more than $1 per US pound in recent months.
On average, the US currency has been trading at around two per cent higher than the euro since its peak of $2.0575 a euro in December 2008, Edelman said.
But the report also said that if the US were to devalue its currency to about one per 1.2 per cent of its economic output, the exchange rate would drop to $US0.9615 by 2020.
It estimated the impact on US economic output would be as much as $US7.6 trillion by 2020 with the biggest losses coming from manufacturing.
Edelman said it would also have an impact on the price of goods and services in the US, with the trade deficit and trade deficit being the biggest impacts.
US trade deficit per person: Edelman (billions of dollars) In 2020, the trade gap would be $18.5 billion with a big spike in the trade balance between the US and China, where the gap was $19.5bn in 2020.
In 2025, the gap would rise to $21.6 billion, with Mexico the biggest beneficiary of the US-China trade deficit.
This was largely due to the US increasing its trade deficit with China by $5.7 billion in the previous year.
But the US also had a trade deficit of $US5.9 billion in 2018, a year when the country was still in recession.
Edelman predicted the gap in the 2020 trade deficit would rise from $US11.6bn in 2019 to $26.4bn in 2023, and to $32.2bn by 2029.
At the time of the Edelman report, the world’s largest economy had the fourth largest trade deficit in the world behind Germany, Japan and China.
In December, the IMF warned that the US trade deficit was the biggest on the planet and warned that if it were to increase to $1 trillion in 2020, it would result in “severe damage to the international financial system”.
It said the country’s trade surplus would be the fourth biggest in the developed world.