Dollar Sends Warning That U.S. Is Losing Its Grip on the Virus
- Losses accelerate during U.S. hours as Covid cases mount
- A 20-year-old framework for dollar traders is buckling
Jul. 31: Euro Strength, Dollar Weakness Has Further to Go: Goldman’s Trivedi
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The dollar is flashing a warning sign to U.S. policy makers -- get a grip on the virus.
After hitting an all-time high in March, a gauge of the greenback lost 10% of its value, with declines accelerating in recent weeks as infections spread seemingly unchecked across the nation. Much of the sell-off has come during New York trading hours, suggesting domestic investors are closing out bets on U.S. strength and spurring renewed questions about the supremacy of the dollar. Meanwhile, a popular model that’s guided dollar traders for the past two decades has warped.