The dollar experienced its biggest annual devaluation since 2017 and ended 2020 on Thursday, Tasnim reported. The dollar acted as a safe haven in March 2020, at the height of the coronavirus epidemic in the United States, but has since fallen sharply due to the Federal Reserve’s stimulus.
The dollar hit a two-year high of 102.99 against the world’s major currencies in March, ending 2020 with 89.96, down 6.77 percent year-on-year, and down 12.65 percent from its peak in March.
Improving the outlook for the world economy with the start of the corona vaccination, lower interest rates in the United States and the continued purchase of bonds by the Federal Reserve has further weakened the dollar.
Waiting for more fiscal stimulus to pass, and an increase in the deficit and current account deficit are other factors that are likely to hurt the dollar next year.
“The dollar is expected to continue to decline over the next few years as the Federal Reserve keeps interest rates at zero,” said Kevin Butcher, Ravenstraft’s investment director.
It ended Euro 2020 with a value of $ 1.2215, an 8.97% annual increase. The euro hit $ 1.2310 on Wednesday, its highest level since April 2018.
The Australian and New Zealand dollars both hit a record high of $ 0.7743 and $ 0.7241 on Thursday, respectively. This means that they had an annual value increase of 9.76% and 6.82%, respectively.
The dollar lost about 4.90 percent of its value against the Japanese yen in 2020, reaching 103.25 yen. The dollar also lost 12.09% of its value against the Swiss krona, reaching 8.2176.
The US dollar fell 1.79 percent against the Canadian dollar. The pound reached $ 1.3686 on Thursday, the highest figure since May 2018.