Saturday, 12 August 2017

Why is the US dollar falling?

The value of the dollar index, which tracks the dollar against six major global currencies, has fallen about 10% since January. It pushed lower on Friday, even as demand for other safe-haven assets - typically a category that includes the US dollar - rose amid sabre-rattling between the US and North Korea. The dollar, which surged in 2014 as the US economy gained strength, is hardly in danger territory. The index is running just a bit lower than it was a year ago. But key US economic data was weaker last year. So what's behind this year's decline?

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