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Upcoming Fed meeting comes into focus as dollar drops to two-year low

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Reuters/Tom Westbrook

“The dollar fell to a more than two-year low on Monday and is set to log its largest monthly fall since July, as a combination of vaccine optimism and bets on more monetary easing in the United States drives investors out of the world’s reserve currency.”

USAGOLD note:  While investor attention has been focused on the stock market’s performance and the post-election maneuverings of both political parties, the dollar has continued to slide on international markets. Though it is difficult to decipher precisely cause and effect when it comes to the dollar trend at this juncture, the decline does coincide with full recognition of the onslaught and spread of the coronavirus. Since its March peak, the greenback is down over 11.25% (as shown in the chart immediately below).

line chart showing the decline in the dollar since its peak in March down 11.25%

Chart courtesy of TradingView.com • • • Click to enlarge


Repost from 12-3-2020

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