The U.S. dollar is on its longest losing streak in more than two years.
The value of the American currency has steadily weakened due to an evolving bank crisis and after the U.S. Federal Reserve signalled that its interest rate increases are coming to an end.
As expected, the Fed raised its benchmark interest rate by 25-basis points but dropped language about “ongoing increases,” leading to speculation that the central bank’s monetary policy tightening regime is coming to an end.
The U.S. dollar has also been impacted by wavering confidence in banks following the collapse two weeks ago of Silicon Valley Bank and Signature Bank.
As a result, the Euro currency has surged to a seven-week high of $1.0930, having now risen for six straight trading sessions.
Britain’s pound sterling is also hovering near a seven-week high after data showed a surprise rise in the U.K. inflation rate to 10.4%, putting pressure on the Bank of England to raise interest rates.
The U.S. dollar index, which measures the American currency against six peers, was last down 0.2% and on track for its sixth straight daily drop, marking its longest losing streak since September 2020.
