Data: FactSet; Chart: Axios Visuals

The dollar index fell to its weakest level since June 2018 on Monday, accelerating a slide that has put it on pace for its worst month in nearly a decade. The greenback's value against global currencies has declined by 6.4% over the last three months.

What's happening: The dollar's weakness is a reflection of the market's disillusionment with the U.S., investors say, as the Trump administration's response to the coronavirus pandemic has left much to be desired.

  • The European Union's coordinated fiscal policy response, by comparison, has boosted the euro to its highest against the greenback since 2018 and has investors expecting more losses for the dollar and gains for the euro.

What we're hearing: The dollar's dominance "is being challenged by the visuals witnessed around the globe: On top of a pandemic, the country seems to be politically unstable," Juan Perez, senior FX trader and strategist at Tempus, tells Axios, also noting the growing "Cold War" with China.

  • "Stocks are about the only positive thing that is presented to the world from here. Faith in our overall global leadership has been shaken and it’s not policy, but evidential death tolls that keep rising from a contagion others have managed to minimize to various degrees."

What's next: Bloomberg reports that asset managers have jettisoned net long positions on the dollar and taken bearish positions "as U.S. exceptionalism wanes."

  • The euro has risen 10 of the past 11 sessions, notes Marc Chandler, chief market strategist at Bannockburn Global Forex, and looks to be picking up steam as the dollar is sold against more currencies and by more investors.

Flashback: Yale University senior fellow and former Morgan Stanley Asia chairman Stephen Roach predicted earlier this year that the dollar would fall by 35% against global peers.

Go deeper

Dion Rabouin, author of Markets
Aug 19, 2020 - Economy & Business

Investors still don't believe the stock market's rally can last

Illustration: Aïda Amer/Axios

The S&P 500 closed at a new all-time high on Tuesday and has rallied by around 52% since hitting its low point on March 23 — the best run the index has ever had in such a short time.

The state of play: While the market has continued to rise for the past five months, most investors have been incredulous about the sustainability of gains.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Chris Christie: Wear a mask "or you may regret it — as I did" — Senate Democrats block vote on McConnell's targeted relief bill.
  2. Business: New state unemployment filings fall.
  3. Economy: Why the stimulus delay isn't a crisis (yet).
  4. Health: FDA approves Gilead's remdesivir as a coronavirus treatment How the pandemic might endMany U.S. deaths were avoidable.
  5. Education: Boston and Chicago send students back home for online learning.
  6. World: Spain and France exceed 1 million cases.

Early voting eclipses 2016 total with 12 days until election

People stand in line to vote early in Fairfax, Virginia in September. Photo: Tasos Katopodis/Getty Images

Americans have cast more than 47.1 million ballots in the 2020 presidential election, surpassing the total early-vote count for 2016 with 12 days left until Election Day, according to a Washington Post analysis of voting data.

Why it matters: The election is already underway, as many states have expanded early and mail-in voting options because of the coronavirus pandemic.