Currencies
Dollar Faces Treacherous December on Trump, Rate Risks
- US currency has weakened in eight of the last 10 Decembers
- Foreign-exchange volatility has risen since Trump’s Nov. 5 win
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Dollar bulls emboldened by Donald Trump’s win are entering a month that has historically punished the greenback.
The US currency has advanced about 2% since the Nov. 5 election, but seasonality shows the odds are stacked against it from here. The greenback posted losses in eight of the last 10 Decembers, often a victim of year-end portfolio rebalancing flows and the so-called Santa Rally that emboldens traders to sell dollars for riskier assets like stocks.