US dollar deepens losses to 4-Month LowUS dollar deepens losses to 4-Month LowThe US dollar fell against...
US dollar deepens losses to 4-Month Low
US dollar deepens losses to 4-Month Low
The US dollar fell against a basket of global currencies on Tuesday to deepen losses for the fifth consecutive day, hitting a four-month low as long-term US bond yields fell. Concerns about the risks of implementing the new US tax law continued, and last year the US currency recorded its biggest annual loss since 2003.
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| US dollar deepens losses to 4-Month Low |
The dollar index was down 0.5 percent at 12:45 GMT, or around 91.50, at 91.87, the highest at 91.92 and the lowest at 91.46, the lowest level since Sept. 20.
The index ended 0.4% lower on Friday, the fourth consecutive daily loss, as the greenback continued to sell against most currencies, especially low-yielding currencies.
US 10-year bond yields lost 5 basis points last week to 2.43%, as risk-taking investors and settlement groups accelerated until the end of 2017.
Over the past week, the dollar index has lost 1 percent, the third weekly loss in a row, on concerns over the risk of implementing the new US tax law.
Late last month, the US Congress approved the country's tax reform bill, which includes the biggest 30 years of tax reform, and President Donald Trump signed the $ 1.5 trillion bill.
The risks of tax reforms lie in the costly bill of the law, which is expected to boost the country's debt, increase bond issuance, expand the budget deficit, reduce the chances of recovery in the country's inflation levels and thereby increase interest rates by the Federal Reserve.
Over the course of 2017, the US dollar index fell 10.2%, marking the first annual loss since 2012, the biggest annual loss since 2003.
US currency sales accelerated in 2017 as a result of profit taking and the settlement of huge buying transactions, especially after the US currency hit its highest level in 14 years against a basket of currencies.
The US currency has also suffered some negative pressure as a result of political tensions inside and outside the United States, linked to the scandal involving Russia's intervention in the US presidential election, the relationship between the Russian government and US President Donald Trump's election campaign and the external tensions with North Korea.
Despite the strength of US economic growth this year, this strength was not enough to support the US currency, due to weak levels of inflation in the country, and continued concerns of US monetary policy makers about the weakness of inflation and its impact on the future of raising interest rates in 2018.
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