Increasing confidence that the world might be past the worst of its economic and financial woes has been good for many assets in recent weeks – equities, corporate bonds, and commodities – but it has certainly not favoured one asset, namely, the dollar.
The US currency has fallen 10 per cent since it hit a three-year high on a trade-weighted basis in March. This week it reached its lowest point against a basket of currencies since December.
Some pundits expect the dollar's woes to continue.
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