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.
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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
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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.