The US dollar is ripe for sharp depreciation

The US dollar – usually considered a traditional “safe haven” refuge – suffered its worst monthly performance in nearly a decade last month as risk-averse investors shunned it. 

€100 bill merged with €100 note © Getty Images/iStockphoto
Confidence in the euro has been a key factor behind the greenback’s recent slide
(Image credit: © Getty Images/iStockphoto)

Has the greenback reached a turning point? The US dollar index gained more than 10% between March 2018 and April 2020. The index measures the greenback’s value against a basket of six major trading partners’ currencies. Yet that trend has now gone into reverse, with the dollar falling by 4.4% in July, its worst monthly performance in nearly a decade. It is down by 9% from a mid-March high and has reached a two-year low.

Debasement, debt and dodgy institutions

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.