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Dollar’s Best Streak Since 2012 Is Over, Showing Stress Easing

  • U.S. Congress moves closer to passing major stimulus bill
  • Markets are starting to feel ‘tsunami of liquidity,’ PGIM says
Bitcoins And U.S. Dollar Notes As IMF Vouches For Virtual Currencies
Photographer: Chris Ratcliffe/Bloomberg
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Traders around the world dumped the dollar in favor of risk assets as moves by U.S. leaders to support the world’s largest economy spurred relief across markets hampered by liquidity strains.

The Bloomberg Dollar Spot Index declined 0.6%, ending a 10-day rally that took it to the strongest level on record after the Federal Reserve announced unprecedented stimulus. The index earlier fell as much as 1.5%, the most since 2016 on a closing basis. Treasuries fell and stocks around the world surged on signs U.S. leaders are close to reaching a consensus on a spending bill to boost the economy.