Dollar Falls Further, May Turn Higher But Timing Uncertain

 

The dollar declines further, pressured by a collapse in U.S. real yields and the U.S. growth advantage diminishing versus other developed economies but the currency may have been oversold and could be due a correction, Societe Generale says. “The currency has moved further than the shift in growth expectations so far would seem to justify, and the positioning to get the dollar down has been eye-wateringly extreme but when that triggers a correction isn’t easily forecastable,” SocGen’s Kit Juckes says. The dollar index drops 0.2% to 91.9410 after earlier reaching 91.7460, its lowest since May 2018, according to FactSet.