As reported by Reuters, the US dollar has reached its lowest mark for two and half years. The dollar has shown the most significant monthly dip since July, having lost 2.5% of its value in November.
The fall began in the context of the dynamization of the world market, which occurred in November.
Indeed, the markets all over the world have revived, as investors have made a quality improvement in the market environment amid the announcement of the vaccines against COVID-19. Expectations of further stimuli that followed the victory of Biden also contributed to the rally.
These expectations of incentives seem to be the reason why the dollar is so low. MUFG currency analyst Lee Hardman wrote, that the “improving global growth prospects are combined with strong signals from the Federal Reserve about that. It intends to maintain a mild monetary policy in the period of economic recovery, which has caused the US dollar to fall. ”
Meanwhile, “Asian currencies and currencies that depend on the price of raw materials, also benefit from the growth of the Chinese economy, which leads the global recovery after the shock of COVID-19. “
A weakened dollar can be useful for Bitcoin and can change “the world order in the form in which we know it.” For a few months now, analysts have been talking about the fact that a weak dollar can be a positive moment for Bitcoin and other cryptocurrencies, but not necessarily a positive factor for the position of the United States on a global level.
