The dollar index has fallen by 2.6% in the last four days, suffering its worst series of losses since April, reports CNN.
This indicator, which measures the strength of the American currency against a basket made up of six other currencies – among which the Euro holds a majority share – is nearing its lowest level in the last four years.
While stocks have rebounded after a brief drop recorded last week, the dollar has continued to fall.
Uncertainty about the policy decisions of the Trump administration contributes to a weaker dollar, say analysts.
A weaker dollar can make US exports more competitive on the global market.
On the other hand, the weakening of the American currency may also signal that investors are taking defensive measures, selling dollars to reduce their exposure to the volatility of Trump administration policies.
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