Back in March, the dollar declined by 10% in the global currency market, and now its decline has accelerated.
The Bloomberg agency writes about it.
According to the media, even American traders are closing their dollar positions on the New York Stock Exchange, which “revives the issue of the superiority of the dollar. In any case, the strategy of dollar traders, which has been working for two decades, has been sharply deformed.”
As noted in the agency, at the dawn of the coronavirus pandemic, the dollar was strengthening in the market, as investors saw security in American assets. However, further developments undermined the dollar’s position. The U.S. could not cope with the coronavirus, which led to the inevitable collapse of the economy with extremely blurred prospects for recovery.
During the trading day in the U.S. dollar losses often increased. This is an indication that investors were draining the dollar when new data on the coronavirus spread appeared. Speculative deals are now the shortest since November 2017, and interest in the U.S. currency has weakened.
Gross domestic product has undergone the deepest quarterly decline since the middle of last century. Although some experts still believe in the growth of the dollar, the pandemic pushed traders to hedge dollar risks when buying treasury bonds. It hit even harder the prospects of strengthening the American currency.