The growing rate of infection, the failure of government aid, unemployment and the escalation of tensions with China are provoking the dollar to collapse.
Reuters writes about it.
In July, the U.S. dollar index showed the largest monthly decline in a decade, as investors no longer associate the U.S. currency with security. Experts warn that the dollar’s position will continue to weaken. At the same time, Asian currencies, such as Singapore dollar, South Korean war and Chinese yuan, benefited from the market situation.
Earlier News Front reported that even American traders are closing their dollar positions on the New York Stock Exchange. During the trading day in the U.S. dollar losses often increased. This is an indication that investors were pouring 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.
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.