Dollar slide could be investment “game changer”
This week’s accelerated U.S. dollar slide may mark a key moment in the world’s financial stabilization and economic recovery, indicating a return of stress-free investment patterns that could be self-perpetuating.
Although many false dawns and premature “all-clear” signals have come and gone over the past two years of market turmoil, investors are watching the dollar’s drop with great interest.
Its decline — the first in almost a year — appears independent of broader movements in equity or bond markets.
After months in which the dollar did the exact opposite of the stock market — partly on the argument that falling stocks meant greater stress and hence more demand for liquid, safe cash and Treasuries in the United States — the link has broken down.
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