Bad news for the dollar after the global fall of stock markets

• The dollar droped to its lowest point on Monday.
• Global markets in crisis, what happened?
• What will the United States do?

The U.S. dollar has suffered one of its worst declines in months!

According to CNN, the value of the dollar hit its lowest level in eight months, causing concern about the economy.

The dollar index, which measures its strength against other currencies, fell to a low of 102.18 this Monday.

This is the lowest point since January.

WHAT HAPPENED TO THE DOLLAR AFTER THE BRUTAL STOCK MARKET CRASH?

Although the dollar regained some ground by midday, it is still on track to close at its lowest point since the beginning of the year.

The U.S. economy is in a critical situation. Inflation has decreased, but unemployment has increased.

YOU MIGHT BE INTERESTED: US Hispanic unemployment rose 5.3% in July

This has led the Federal Reserve (Fed) to consider a possible interest rate cut in September, which could cause the dollar to continue losing value.

Analysts at LPL Financial are alarmed. «The dollar should soften soon against its global peers,» they wrote in a note to clients.

«Monetary policy is shifting, and concerns about the economic outlook and inflation are serving as catalysts for the dollar’s weakening,» they added, according to CNN.

The economy is in trouble, and the dollar is paying the price. The big question is: what will happen when the Fed cuts interest rates?

The U.S. stock market also took a hard hit on Monday.

After the July employment report was worse than expected, the Dow Jones Industrial Average fell 2.7%, the S&P 500 4.1%, and the Nasdaq Composite 6.3%.

The Cboe volatility index, which measures bets on expected volatility in the stock markets, shot up to 55 points.

This level has not been seen since the pandemic and the Great Financial Crisis of 2008.

The global stock market is experiencing significant volatility.

Japanese stocks also suffered this Monday, with the largest daily loss in their history, according to the cited source.

Investors are seeking refuge in safer assets, but uncertainty remains.

What’s next? The U.S. economy faces a period of great uncertainty.

With the dollar at its lowest point in eight months and stocks in freefall, all eyes are on the Federal Reserve’s next actions.

The news of the dollar’s drop and its impact on stock markets is a reminder of the volatility and fragility of the global economy in these times.

TO LISTEN TO THE PODCAST OF THIS AND OTHER NEWS, CLICK ON THE PHOTO