Weekly Comic: The dollar is doing something it hasn't done in 32 years
The U.S. dollar sank to 15-month lows against a currency basket this week, weighed down by political turmoil gripping Donald Trump's administration and by largely uninspiring U.S. economic data, particularly sluggish inflation, which is adding to uncertainty about the pace of future Federal Reserve policy tightening.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, sank to its lowest level since May 2016 at 92.39 on Wednesday.
The index fell almost 3% in July, its fifth straight monthly decline, which is the longest losing streak since 2011.
The dollar is down around 9% through the first seven months of the year. The last time the greenback suffered such a weak start to the year was in 1985, when it suffered a 12.5% decline in the January-July period.
Political turmoil in Washington dampened hopes for quick passage of President Donald Trump's stimulus and tax reform agendas, weighing heavily on appetite for the greenback in recent months.
Tepid U.S. inflation, which has lessened the risk of another Federal Reserve rate hike this year, has also been a factor in the dollar's descent.