Despite a selloff in the stocks, the U.S. dollar, traditionally a haven in times of turmoil, is hovering near multi-year lows. It could see even more downside this year for two major reasons: Europe and China. The DXY U.S. dollar index ended January with losses of 3 percent, its worst drop in nearly 2 years, and its third straight month in negative territory.
For all the stimulus from tax cuts, the growth in the U.S. economy is still on par with Europe’s. As the global economy continues to grow, it will only put more pressure on the greenback, one respected currency expert explained to CNBC recently.
“The dollar weakness has a lot to do with the fact that we have strength in the global economy,” Jens Nordvig, founder of Exante Data, told CNBC’s “Futures Now” this week.