Why the dollar has been quietly losing ground
A softer rate outlook and rising foreign demand for non-US assets have pushed the dollar index to a four-month low.
The dollar index has fallen about 3% since July, its steepest slide of the year. Traders have trimmed bets on further US rate rises just as European and Japanese yields have moved higher.
What the data says
A weaker dollar helps US exporters and multinationals that earn abroad, but it raises the cost of imported goods. Currency strategists are split on whether the move has further to run.
Economists caution that a single reading rarely settles the debate. Revisions to earlier months have been large this year, and the gap between survey data and hard data remains unusually wide. Policymakers have said they will keep watching a broad set of indicators before changing course.
A softer rate outlook and rising foreign demand for non-US assets have pushed the dollar index to a four-month low.
Why it matters for households
This article is for information only and is not investment advice. Figures are illustrative and may be delayed or simulated for demonstration purposes.
For information only — not investment advice.
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