When the Dollar Falls, What Should Investors Do?
In addition to everything else that you've found yourself worrying about in 2020 -- fire tornadoes! murder hornets! -- a weakening dollar has now entered the mix. The US dollar is currently trading about 10% lower than its March highs -- the lowest it's traded since May 2018. But before you panic, it's important to understand why the dollar is declining in value -- and whether that signals a crisis, an opportunity, or a little bit of both.
Some level of fluctuations in the dollar's value is normal, and it's not always an immediate cause for alarm. In March, it was trading at its highest price since December 2017, which means that part of its subsequent decline could be due to cyclical ups and downs.
COVID-19 concerns have also pushed the dollar downward. The United States is still struggling to contain the virus, creating an ongoing hit to the economy and doubts about whether or not the United States will be able to successfully emerge from this crisis.
Source Fool.com
