Another Miserable June for the Dollar, No Fed Help in Sight
- The greenback has dropped in eight of last 10 years in June
- Dollar weakness has more to go: Deutsche Bank’s Saravelos
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Traders looking to short the dollar have history and monetary policy on their side as seasonal trends and a dovish Federal Reserve align, further sapping demand for a currency that’s fallen almost every day this month.
The Bloomberg Dollar Spot Index has dropped in June in eight of the last 10 years by an average of roughly 0.7%. This month it is already down 2.3% ahead of the Fed’s decision Wednesday, when policy makers are expected to reiterate a commitment to buoy the economy. The index’s decline pushed it below the psychological milestone of 1200, a level unseen since early March.