The dollar index, which compares the greenback against a basket of currencies, is trading at 93.12 points, very close to its annual low of 92.80. Will this adverse trend continue for the greenback?
The Coronavirus pandemic is causing disasters in the world’s economies, the US being one of the hardest hit, thus affecting the price of the dollar.
The United States government has injected billions of dollars into its economy to curb the adverse effect of COVID-19, especially on the working class, which is the most affected at this time. The unemployment rate in the world’s leading economy is just over 10%, after having reached a peak of 14% in April.
Dollar index trend
The dollar is weak, especially against the euro and the Japanese yen. This is dragging its benchmark to the 93-point area, very close to its annual low.
If we look at the graph of the last 5 years, the next support for consideration is only located at 89.10 points.