The dollar this week showed the sharpest decline this year, which followed the release of a softer inflation report than expected. This was stated by Bank of America strategists, whose opinion is quoted by Business Insider.
In early October, the dollar index held at 107 points. By the time the statistics were released, it had fallen to 105.53, and on Tuesday, when its publication took place, it collapsed by about 1% - to 104.09. It has lost about 2% in a month and a half, which is the sharpest drop this year, the publication said.
Tuesday's report showed a downward trend in consumer prices - in October their growth was lower than forecast. In addition, U.S. macrostatistics is now more modest. The market reacted actively - followed by the largest dollar sell-off this year, the yield of treasuries fell, and stocks rose, BoA notes. At the same time, the index of "American" has not reached oversold level, and only a powerful stimulus - hawkish mood of the Fed or changes in the economy - can inspire players to buy it, the bank believes.