The US dollar has suffered a dramatic reversal from the March highs, tumbling to 27-month lows last week. Chris Vecchio, senior strategist at Daily FX discusses what’s driving the weakness.
Vecchio says that the turnaround for the greenback was caused by the US’ handling of the Covid-19 crisis, which he says is ‘worse than anyone else’. He talks about what the dollar’s decline means for its domestic economy and whether the currency is a proxy for risk-off or risk-on. Vecchio also talks us through what a Biden or Trump presidential victory could mean for the dollar, he thinks that either way, further weakness is likely.
