- The U.S. dollar is down nearly 9%, year to date. Yields on Treasuries have stayed high even though the stock market has gone down—the opposite of what investors normally expect. Some are blaming Japan and China for selling U.S. bonds, which would hurt the dollar. Others believe hedge funds unwinding leveraged positions in bonds may be to blame. But analysts and economists tell Fortune that as long as the White House continues to generate economic uncertainty, everyone is going to flee the dollar.
The value of the U.S. dollar ticked up yesterday after President Trump did a U-turn and said he had no intention of firing Jerome Powell, chair of the Federal Reserve. It was a rare piece of good news for the world’s “reserve currency,” whose value has fallen 9% year-to-date against the DXY index of foreign currencies.
