Dollar hovers close to three-year lows and is set to record largest loss in May

US dollar index

The dollar went down to its lowest in three years against a group of currencies on Friday and is poised to record its biggest weekly loss since May due to a series of bearish factors balanced out the support the dollar had in the form of the rising Treasury yields amid firming inflation.

The dollar index, which tracks the greenback against a group of other major currencies were near just around 88.438. The index is poised to go down by 2 percent on the week its largest drop since May 2017.

Against the yen, the dollar was steady at 106.110 yen following its drop to 106.020, its lowest in over a year. It was set to lose 2.5 percent for the week.

The euro was looking to go up by 2 percent for the week. On Friday, it was flat at $1.2503.

The pound had a slight change at $1.4104.

The Australian dollar was lower at $0.7940.

The dollar went down as a result of several factors for this year as well as worries that Washington may not pursue a weak dollar strategy and the perceived erosion of its yield advantage as other countries begin to slow down on their easier monetary policy.

Traders also believe that there was a decrease in the dollar’s confidence due to concerns over the deficit in the United States, which is predicted to inflate to almost $1 trillion in 2019 thanks to a government spending spree and big corporate tax cuts.

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