Will April Jinx Continue For Dollar?
Dollar Index is set to continue with its April jinx for the eight years in a row.
The benchmark is down 0.5 percent so far this month. Apart from the seasonality factor, the index has been under pressure amid fears of a trade war between the U.S. and China.
The U.S. dollar didn’t have a great start to the year, declining in two of the first three months. The dollar index logged a 2.3 percent decline in the first quarter as only February—marked by turbulence in global stock markets—contributed a positive monthly performance.
“Despite a tightening Fed policy, the dollar is expected to remain weak as pressure is building back on U.S.-China trade war,” said Pramit Brahambhatt, chief executive officer of Veracity Financials. “This weakness is particularly pronounced against the euro and commodity currencies. 88.50 remains a good support level in the near-medium term.”