The dollar is close to hitting its weakest level in six years
The dollar fell sharply on Thursday against almost all of the world's major currencies, and the dollar index dropped to its lowest since April 2018.
The big picture: The index, which measures the dollar against major currencies like the euro, yen and British pound, fell 0.7%, its fourth daily decline in a row and the fifth time in six sessions it has closed lower.
- It's approaching its weakest level since the dollar strengthening cycle began in 2014.
What they're saying: “The latest blow to the dollar came from the Fed, which vowed not to touch policy even if the outlook for the U.S. economy brightens as it now expects,” Joe Manimbo, senior analyst at Western Union Business Solutions, told MarketWatch, adding that expectations for more government spending are also weighing on the greenback.
Watch this space: Gold jumped by 1.7% to $1887.20 per troy ounce, its highest since Nov. 16, and silver gained 2.4% following a 3.8% increase on Wednesday and is now at $25.74 per troy ounce, the highest since Nov. 6.
- The dollar index is down nearly 7% year to date and 13% lower since hitting its 2020 high in March.
On the other side: The Chinese yuan has gained significantly against the dollar this year and on Thursday moved to 6.53 yuan per dollar, its strongest against the dollar since June 2018.
- The dollar also is trading at or near multiyear lows against major currencies including the euro, Japanese yen and Australian dollar.
- The euro rose through the psychologically important $1.22 level against the dollar early Thursday and could push through $1.25, analysts say.