The dollar on Thursday dropped to its lowest level since May 2018 as the Federal Reserve said it plans to keep interest rates close to zero, and inflation hedges continue to show strength.
- The dollar’s trade-weighted index – a measure of its value relative to a basket of other dominant currencies – dropped to $93.04 Thursday afternoon.
- The last time the index traded this low was on May 15, 2018, according to TradingView.
- As the dollar weakens, gold continues to trade near its new all-time highs, reaching $1,980 on Tuesday.
- The yellow metal has gained more than 10% in July.
- Silver has rallied nearly 30% in July, trading at $23.26 at last check.
- Bitcoin, previously stuck trading in a tight range between $9,000 and $10,000 for nearly two months, followed the rallies in precious metals when it broke above $11,400 on Tuesday.
- Bitcoin has soared 53% in 2020, according to Messari.
- “In the coming weeks you’ll see the dollar weakening further,” Qi Gao, a currency strategist at Scotiabank, told the Financial Times.