The buck can’t get a break. The US dollar, strong for so long, has been dropping since late March. And that’s going to continue “over coming months,” according to UBS.
To blame are better tidings on the coronavirus front prompting less safety seeking in US Treasuries, lower US short-term rates, and American political turmoil, according to Mark Haefele, CIO for global wealth management at the Swiss bank, in a research note.
In the beginning, with the market’s February-March panic over COVID-19, the dollar’s position became greater, as overseas money flocked to US-denominated Treasury bonds and other refuge instruments in America. In fact, over the past three years, amid the strains of the US-China trade war and Brexit, the dollar is up 10%.
After the massive Washington rescue package was announced in March, though, the greenback weakened. Against a basket of its six major trading partners’…