Commodity Currencies Crash On USD Dominance

Access To Financial Markets Made Easy • Sep 24, 2020 at 3:56 AM EDT

The US dollar - which had been the worst-performing currency over the past few months - has roared back to life as investors weigh up the prospects of a second wave of the coronavirus and new national lockdown measures.

Commodity currencies crash on USD dominance

The dominance of the currency which is set to record its best week since April has hit commodity currencies particularly hard. The Australian dollar vs US dollar exchange rate has fallen more than 5% in September already, a huge amount in the five-trillion dollar a day currency market. (FXA, UUP)

Other commodity currencies such as the New Zealand dollar, South Africa rand and Mexican peso have also been hit hard. The general 'risk-off' mode this week has also infected global stock markets which are on track for the fourth week of declines.

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