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The main drivers were Fed cut expectations/yield spreads plus tariff/trade-policy volatility and confidence effects (incl. Fed-independence rhetoric). That mix helped push the dollar toward its steepest annual drop since 2017
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I get it, but that means those factors are driving both the weak currency and the weaker stock market, rather than the weak currency driving the weak stock market.
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I hear you. Causality isn’t ‘USD down → US stocks down.’ It’s shared drivers. Still, USD down → foreign assets up (in USD terms), so relative performance can favor ex-US.
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Other things equal, a weaker (weakening) dollar would correspond to higher prices.
That makes me suspect some of the dollar's weakness is coming from relatively low interest in buying US stocks.