Why is dollar weakening

Tuesday, 25 May, The Big Read. The demise of the dollar? Sunday, 23 May, Explainer Market Questions. Where will bitcoin prices head next? Wednesday, 5 May, Trade Secrets.

Monday, 3 May, Dollar under pressure as investors turn optimistic on growth. Thursday, 8 April, Wednesday, 24 March, Megan Greene. What a stronger dollar means for the world. Thursday, 18 March, Markets Insight Chris Watling. Time for a great reset of the financial system.

Wednesday, 17 March, FT Alphaville Federal Reserve. Banks need to be freed from Fed deposits. Thursday, 4 March, Markets Insight Eva Szalay. By Hari Kishan. Following a stocks rally in November, the dollar - which thrives in a risk-off environment - weakened around 3. Despite around 14 million people infected in the U. But underscoring the prevailing uncertainty, there was no consensus among analysts who answered an additional question on how the dollar would trade over the next three months.

Although 23 of 60 strategists said they expected the currency to trade around current levels, 25 said broadly higher. The remaining 12 chose broadly lower. While sticking to their long-held view of a weakening dollar over a month horizon, analysts were turning skeptical. A higher euro-dollar rate means a weaker greenback, as more of the US currency can be purchased with a single euro. The currency pair already trades at the bank's first-quarter forecast of 1.

The team already expected upside for the dollar later in the year, but now sees several reasons why such strengthening can arrive sooner. Detailed below are the five reasons Bank of America expects the dollar to strengthen in Read more: A wealth management research chief shares 6 stock-market sectors to buy as the country reopens and the economy experiences its 'best single year of GDP growth since '. After taking several actions to pump dollars into the struggling US economy, the Federal Reserve is starting to near the end of its ultra-easy policy stance.

Some officials have started talking about tapering the central bank's asset purchases. The Fed quickly rebuffed concerns of premature tightening, but the mixed communication suggests policy normalization could arrive early next year, the strategists said.

It's a different story on the other side of the Atlantic.