The US dollar is set to register its fourth consecutive monthly decline on Monday, its longest losing streak since mid-2017. This slide was triggered by strengthened geopolitical risks and the recent strategy by the U.S Federal Reserve in allowing high inflation.
The U.S. Dollar Index, which tracks the greenback against a list of other major currencies, down by 0.08% to trade at 92.308 at the time of this report.
The latest speech by Federal Reserve Chair, Jerome Powell revealed an accommodative shift in the central bank’s approach to inflation increasing pressure on the U.S dollar as global investors interpreted it that U.S interest rates could stay lower for a longer period of time.
Against a basket of currencies =USD the dollar was flat at 92.256 in midday trading in Europe and is down 1.28% for the month.
If sustained that would be its worst August in five years and make for the longest run of monthly losses since the summer of 2017.