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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.

Woman who allegedly stole laptop from Pelosi's office to sell to Russia is arrested

Photo: FBI

A woman accused of breaching the Capitol and planning to sell to Russia a laptop or hard drive she allegedly stole from Speaker Nancy Pelosi's office was arrested in Pennsylvania's Middle District Monday, the Department of Justice said.

Driving the news: Riley June Williams, 22, is charged with illegally entering the Capitol as well as violent entry and disorderly conduct. She has not been charged over the laptop allegation and the case remains under investigation, per the DOJ.

Biden will reverse Trump's attempt to lift COVID-related travel restrictions

Photo: Tasos Katopodis via Getty

The incoming Biden administration will reverse President Trump's last-minute order to lift COVID-19 related travel restrictions, Jen Psaki, the incoming White House press secretary, tweeted.

Why it matters: President Trump ordered entry bans lifted for travelers from the U.K., Ireland, Brazil and much of Europe to go into effect Jan. 26, but the Biden administration will "strengthen public health measures around international travel in order to further mitigate the spread of COVID-19," Jen Psaki said. Biden will be inaugurated on Wednesday, Jan. 20 and Trump will no longer be president by the time the order is set to go into effect.