It’s back to square one for the dollar.
Friday’s worse-than-expected U.S. employment data saw the Bloomberg Dollar Spot Index drop decisively below its 2021 uptrend, putting it back to little changed for the year. The biggest one-day slide in five months has also put the greenback at risk of a further decline toward the lowest since February 2018.
The data miss is the latest blow to the world’s reserve currency after its first-quarter revival was snuffed out by retreating Treasury yields, improving sentiment toward economies outside the U.S., and a dovish Federal Reserve. The dollar gauge has fallen almost 14% from a record high set last March, and the likes of JPMorgan Asset Management and T. Rowe Price are predicting more losses ahead as the global economy recovers.
“We continue to see the ‘peaking U.S. exceptionalism’ narrative playing out through a weaker dollar over time,”…