U.S. Dollar’s Decline may be Spooking Markets

Up until a few weeks ago a firm dollar was a gift to central bankers outside the U.S., with weaker domestic currencies providing a powerful economic boost and aiding monetary policy easing.

But with the dollar now in reverse amid mixed U.S. economic data, analysts say central banks in Europe and Japan may have to maintain monetary stimulus for longer than anticipated.

The dollar fell to a two–week low of about 118.90 yen on Thursday, while the euro hit a three-month peak around $1.1445 – taking its gains in the last month to just about 8 percent.


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