Stimulus Threatens Dollar’s dominance for the year-end

Stimulus threatens dollar's dominance for the year-end

The quarter may bring some alterations for the dollar, as its year-end authority may end following the fiscal stimulus package. It may place a crack in the camaraderie of the US equities and the greenback. It is happening due to the deficit of carry-trade appeal.

Interestingly, the US index has displayed growth of 1.7 per cent on an average in the fourth quarter every year, since the decade. Also, the S&P 500 index has inched with a pace of 1.9 per cent annually in the same duration.

However, the global pandemic has effected a tectonic shift in the pattern of currency exchange. Notably, due to the upcoming presidential election, it’s being anticipated that there may be further heaves in the market.

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