The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Currency trading: The dollar: it’s down but not yet out

The US dollar’s long-term weakness looks set to persist as the currency seems to fall to a fresh historical low against the euro on a weekly basis. The latest G7 meeting, held over the weekend of October 20-21, did nothing to provide any support. In the immediate aftermath of the meeting, the dollar fell to 1.4349 against the euro before bouncing. The reasons for the recovery, at this stage, are not clear.

However, with the dollar fast approaching its all-time synthetic low of around 1.4550, it might well start to attract speculative buying. Another likely reason is that it has got crossed-up and might well derive some support from the fact that it is now also being sold against the yen.

As Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi in London, commented: "Yen buying has intensified after comments at the G7 meeting in Washington indicated that the US authorities have become more concerned over the potential impact of the US housing market collapse.The lack of verbal support for the dollar at the G7 meeting is evident today by the dollar index, which hit a new record low of 77.09."

Hardman concluded: "The notable lack of support for the dollar is likely to leave market participants with an impression that the US authorities are privately content with a weaker dollar given the support from net exports to overall GDP growth."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree