US Dollar Plummets to Lowest Point in 2.5 Years: Report
- The dollar's drop comes on the heels of a global market surge that took place throughout the month of November.
The USD has hit its lowest point in two and a half years, Reuters reports, as “the global equities rally paused for breath.” At the same time, riskier currencies have also seen a slight dip.
Indeed, "the dollar was set for its biggest monthly loss against a basket of currencies since July, having wiped 2.5% off its value in November. At 0836 GMT it was at 91.654," Reuters wrote.
The drop comes on the heels of a global market surge that took place throughout the month of November.
Indeed, markets rallied around the world as investors bet on Joe Biden’s victory in the US Presidential election, as well as a series of positive developments for a COVID-19 vaccination. Expectations of further stimulus efforts that followed Biden’s victory also reportedly contributed to the rally.
However, these expectations of stimulus seem to be a key part of why the dollar seems to be weakening: in a note to clients, MUFG currency analyst, Lee Hardman wrote that “the improving outlook for global growth combined with strong signals from the Fed that it will maintain loose monetary policy well into the economic recovery have been encouraging a weaker U.S. dollar.”
Meanwhile, “Asian and commodity-related currencies have also been benefiting from the outperformance of China’s economy which has been leading the global recovery from the COVID-19 shock.”
A Weaker Dollar Could Be Good for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, but Could Change “the World Order as We Know It”
In the cryptocurrency world, analysts have been speaking for months about how a weaker dollar could be a positive thing for Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, but not necessarily a good thing for the US’s position in the global status quo.
As plans for big government spending continue, combined with “the Fed continuing to do whatever it takes to keep the safety net under the US economy,” said Alex Mashinsky, Chief Executive and Founder of Celsius, to Finance Magnates last month. "You can see how a mountain of debt, greater than all the debt anyone had in history, will come bearing down on the US dollar.”
Alex Mashinsky, founder and CEO of Celsius.
Over the long term, this could seriously degrade the Dollar’s position as the world’s most popular currency: “we may be able to hold back the debt for a while, but each passing day we deplete the trust the entire world has in the dollar and soon enough we will be left holding the bag with all these worthless dollars,” Mashinsky explained.
“While this may be good for Bitcoin and crypto, it is not good for democracy and for the world order as we know it.”
The USD has hit its lowest point in two and a half years, Reuters reports, as “the global equities rally paused for breath.” At the same time, riskier currencies have also seen a slight dip.
Indeed, "the dollar was set for its biggest monthly loss against a basket of currencies since July, having wiped 2.5% off its value in November. At 0836 GMT it was at 91.654," Reuters wrote.
The drop comes on the heels of a global market surge that took place throughout the month of November.
Indeed, markets rallied around the world as investors bet on Joe Biden’s victory in the US Presidential election, as well as a series of positive developments for a COVID-19 vaccination. Expectations of further stimulus efforts that followed Biden’s victory also reportedly contributed to the rally.
However, these expectations of stimulus seem to be a key part of why the dollar seems to be weakening: in a note to clients, MUFG currency analyst, Lee Hardman wrote that “the improving outlook for global growth combined with strong signals from the Fed that it will maintain loose monetary policy well into the economic recovery have been encouraging a weaker U.S. dollar.”
Meanwhile, “Asian and commodity-related currencies have also been benefiting from the outperformance of China’s economy which has been leading the global recovery from the COVID-19 shock.”
A Weaker Dollar Could Be Good for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, but Could Change “the World Order as We Know It”
In the cryptocurrency world, analysts have been speaking for months about how a weaker dollar could be a positive thing for Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, but not necessarily a good thing for the US’s position in the global status quo.
As plans for big government spending continue, combined with “the Fed continuing to do whatever it takes to keep the safety net under the US economy,” said Alex Mashinsky, Chief Executive and Founder of Celsius, to Finance Magnates last month. "You can see how a mountain of debt, greater than all the debt anyone had in history, will come bearing down on the US dollar.”
Alex Mashinsky, founder and CEO of Celsius.
Over the long term, this could seriously degrade the Dollar’s position as the world’s most popular currency: “we may be able to hold back the debt for a while, but each passing day we deplete the trust the entire world has in the dollar and soon enough we will be left holding the bag with all these worthless dollars,” Mashinsky explained.
“While this may be good for Bitcoin and crypto, it is not good for democracy and for the world order as we know it.”