Grin and bear it: Is the US dollar's stumble a sign of things to come?

Signs pointing towards greenback dipping

The Covid-19 pandemic has upended life as we knew it and had a huge impact on the global economy and markets, including currencies.

The US dollar has been steadily declining since the outbreak, and rock-bottom interest rates, ballooning government debt and an unclear economic picture sent the greenback to multi-year lows in 2020. As a result, investors are wondering whether the dollar is entering a new multiyear bear cycle, or just experiencing an episode of weakness in an already decade long bull run. If it is at a turning point, it will clearly have significant implications for fixed income investors. What are the key drivers? The Federal Reserve's massive monetary stimulus and interest rate cuts in respons...