The dollar had its worst first half of the year in more than five decades.
Transcript:
CAROLINE WOODS: The U.S. dollar is having a rough year. The greenback dropped more than 10% against a basket of global currencies through June – its worst start to a year since 1973 – and analysts say the slide may not be over.
What’s driving the decline? A combination of slower U.S. growth, growing concern over the federal debt and deficit, and expectations the Federal Reserve may start cutting interest rates. Lower rates typically mean lower returns for investors — which makes the dollar less appealing on the global stage.
As for the outlook? Oxford Economics says the dollar’s weakness could stick around until 2027.
But, don’t count it out just yet — while weakness may persist, experts mostly agree that the U.S. dollar is not at serious risk of losing its reserve currency status.
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