Two recent bank collapses have weakened the dollar’s claim to be a haven currency, and fueled uncertainty among investors about the Fed’s next moves.
The dollar extended its losing streak Wednesday after the Federal Reserve raised interest rates by 25 basis points. Traders had expected the move, but it still fueled uncertainty about the outlook for rates and the US economy as the regional-banking crisis continues to rattle markets.
The US Dollar Index – which tracks the greenback against a basket of six other currencies – slipped 1% on Wednesday, taking its total retreat to 2% over the last five trading days. It traded flat early Thursday.
The buck’s run of losses follows the collapse of Silicon Valley Bank and Signature Bank earlier this month.
