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The dollar tends to win in times of greater uncertainty
The reason for the drop in the rate of the US currency is the appearance of a vaccine against COVID-19. Analysts also predict a 20% collapse of the dollar in 2021.
The dollar fell to a two-and-a-half-year low against ten world currencies. The reason for the fall in the exchange rate of the US currency was the appearance of an effective vaccine against the coronavirus. The prospect of massive vaccine use has dampened investor interest in the world’s top reserve currency, writes Bloomberg.
The agency Dollar Spot Index, which monitors the movement of the dollar and other world currencies, recorded a 0.2 percent drop in the US currency to the level of April 2018. This came after US authorities reported that the country plans to start the vaccination in three weeks.
The yield on the 10-year Treasury bond rose three basis points to 0.86 percent.
In this context, on Monday, November 23, the pound and the Norwegian krone rose in price against the US currency.
“Vaccine news supports the vision of an imminent global economic recovery, so the dollar is losing its attractiveness as a major asset in case of seeking refuge. This is a favorable environment for risk assets, but negative for the dollar. “said the currency strategist at National Australia Bank. Limited. Rodrigo Catril.
He added that the dollar tends to win in times of greater uncertainty. And vaccines can help restore global economic growth and fuel riskier stocks and other investments.
Previously, analysts at Citigroup had already predicted that the dollar rate would collapse by 20 percent in 2021 if coronavirus vaccines go mainstream and help jump-start global trade and economic growth.
Before that, it became known that the expert had given a forecast of the dollar exchange rate in Ukraine.
Also Korrespondent.net wrote that the yuan rose against the dollar to its highest level since 2018. The Chinese economy is rapidly recovering from the coronavirus epidemic, increasing investor optimism about its prospects.
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