Dollar Heads for Longest Losing Streak in Years!
The strongest sign is on the horizon!
The dollar’s strength is on the wane: The greenback is on pace for its longest losing streak in more than two years.
Tweet on USD weakening valuation
Since it peaked in September, the dollar has been weakening, falling more than 9% since then.
Last week, a signal from Federal Reserve officials that they may be done raising interest rates has helped spur a new downward slide!#USDollar #inflacion pic.twitter.com/QyQcdCXJKF— The_Journalbiz (@the_journalbiz) May 9, 2023
Tweet Chart, Factset
The WSJ Dollar Index, which measures the dollar against a basket of currencies, is down 0.1% Monday, putting it on track for its fifth consecutive session of losses.
The last time that happened was April 2021, when interest rates were at ultra-low levels and the global outlook was improving after pandemic shutdowns.
Since it peaked in September,
the dollar has been weakening, falling more than 9% since then. Last week, a signal from Federal Reserve officials that that they may be done raising interest rates has helped spur a new downward slide. Including Monday’s performance thus far, the dollar has fallen 1.1% over the past five sessions.
Analysts note that more weakening could be ahead, as the U.S. economy is expected to deteriorate over the coming months. Also on the horizon: a potential U.S. debt default. Strategists at Barclays on Friday noted that the dollar has historically weakened during debt-ceiling impasses before then strengthening after a resolution.
