dollar Markets

Dollar Decline Goes Decadal

Every major currency on the planet rose against the US dollar in July, which is poised to be the worst month for the greenback in a decade. The dollar decline story would likely get top billing were it not for gold's epic surge. The two are obviously related, but even as de-dollarization is a theme that generates vociferous debate, it's just not as sexy as gold at record highs. Underpinning both the dollar's stumble and gold's ascent are plunging real US yields, the perception that the US will trail the world in the recovery trade thanks to an inability to control the virus, and concerns about endemic political dysfunction, exacerbated by an authoritarian turn. The latter worry grabbed the spotlight on Thursday when Donald Trump floated the idea of delaying the US election. Read more: Trump Election Delay Could Force World To Rapidly Re-Evaluate Dollar’s Reserve Status Why ‘The Tide Is Going Out On US Dollar Exceptionalism’ It's a perfect storm and it comes as the euro received a material vote of confidence from the market after European leaders established a jointly guaranteed recovery fund, effectively inaugurating fiscal unification. The greenback's bleak month feed
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