The Dollar’s debacle continues, with losses of almost 3.5% in the last two weeks on the index that tracks the greenback’s performance. The threat posed by coronavirus to the growth of the economy is the underlying force driving the current Dollar dynamic, as well as the measures being adopted to mitigate the fallout from the health crisis. Chief amongst these is the Fed’s monetary policy with the American central bank recently surprising many with an extraordinary rate cut of half a point, in a move unseen since the peak of the 2008 financial crisis. Therefore, the risk is now very much to the downside as far as the dollar is concerned as further stimulus may soon be needed and the Fed is the only central bank among its peers still with some room to manoeuvre.
