Investors are betting on an new, surprising trend for 2016: a depreciating dollar. Speculative investors are less bullish on the dollar than at any time since May 2014.
And not without reason—the ICE Dollar Index, which stacks the dollar up against a basket of six currencies, fell over 4% in the first three months of this year. The fall marks the greenback’s worst performance since 2010, the Wall Street Journal reports.
But a weaker dollar isn’t all bad news—it could support a bounce-back rally in stocks, risky bonds, commodities and emerging markets.
And while 2016 has had a shaky start, the Dow Jones Industrial Average is up over 2% after overcoming a sharp decline in the first six weeks of the year. [WSJ]
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