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Dollar Slides Most Since 2016, Ending Imperious Rally For Now

  • Greenback gets sold after California declares virus lockdown
  • Options traders look past weakening, remain bullish on dollar
Bloomberg business news
WATCH: Liquidity issues will continue to create upward pressure on the dollar, says Simon Harvey, FX analyst at Monex Europe.(Source: Bloomberg)
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The U.S. dollar tumbled from a record high, suffering its worst fall in more than four years, after a California stay-in-place order curbed greenback buying amid fears the world’s largest economy is headed for a recession.

The Bloomberg Dollar Spot Index slipped as much as 1.8%, pushed lower by California Governor Gavin Newsom ordering all of the state’s 40 million residents to go into home isolation starting Thursday evening. That marked the most stringent U.S. effort yet to curb the spread of the coronavirus, raising the likelihood of an economic shutdown akin to those seen in Asia and Europe.