Dollar’s downward spiral races in landmark week

It’s turning into a week of vindication for proponents of a weaker dollar, as the case they’ve been making for years may be gaining steam. The greenback is spiraling lower, probing levels last seen in April 2018, judging by a Bloomberg index. The tumble is part of a broader move across financial markets to price in brighter growth prospects for 2021 and the potential for superior investment opportunities outside the U. S.

What’s happening

The euro, the Australian and Canadian dollars and the Korean won have all touched their highest levels in more than two years, while the Swiss franc is at its strongest since 2015. The pound is at the highest in roughly a year, even amid the uncertainty surrounding Brexit.

Why it’s happening

“We are seeing money being put back to work after the defensive positions held in the dollar,” said Chris Turner, a currency strategist at ING Groep NV. “Vaccine news is adding weight to the view of a synchronized global upturn in 2021; the dollar can fall another 5% to 10% next year.”

13%

Dollar’s decline since peaking in March ( down 8% against the Swiss franc and roughly 4% versus the yen in 2020.

$ 1.3489

The pound’s highest point this week, beyond a high touched in early September and the strongest since December 2019.

$ 1.2173

The euro’s high Thursday, its strongest since April 2018.

$ 1.3489

The Australian dollar’s high point Thursday, its highest level in more than two years.

1,096.13

The Korean won’s close against the dollar ( its strongest since June 2018) after breaking the key 1,100 level.

MARK LENNIHAN/ AP 2016 The dollar’s fall is part of a broader move across financial markets to price in brighter growth prospects for 2021 and the potential for superior investment opportunities outside the U. S.