Wednesday 24 January 2018

Dollar collapsed today

Today, the dollar index DXY (that is, the dollar's rate to the basket of six world reserve currencies) collapsed to the lows that were last seen at the end of December 2014. Since the beginning of this year, the index has dropped by 2.6%. The dollar also lost in value and in relation to each of the world reserve currencies separately, "losing weight" against the euro by 0.75%, to the British pound sterling by 1.4%, to the Japanese yen by 0.8%, to the Canadian dollar - by 0.5%.
The most obvious reason for the fall of the dollar was the statement by US Treasury Secretary Stephen Mnuchin that a weak dollar is supporting the economy. In principle, he did not say anything new, just confirmed the economic pattern that a weak national currency supports production in exporting industries. American exchange speculators reacted "patriotically", because a weak dollar supports the US economy, and speculators from other countries helped the growth of their national currencies.


No comments:

Post a Comment