Yesterday’s Fed announcement junk-punched the dollar in its man business. While we were writing this morning, Larry Kudlow, a perennial bull for all things America, burned a dollar on his show and told viewers of CNBC: “This is the value of our money.”
Traders had already been growing weary of the greenback and getting behind the recent rally in the stock market. But this chart says it all. Can you guess when the Fed released their statement?
That was a 2.7% drop for the dollar index during yesterday’s session -- its worst one-day performance since 1971 when the index began. (The index was created in lieu of any solid backing for the dollar under the Bretton Woods exchange rate system. Then-President Nixon, the imperial president, dismantled Bretton Woods on Aug. 15 of that year, blaming a run on the dollar on “international speculators.”)
Traders had already been growing weary of the greenback and getting behind the recent rally in the stock market. But this chart says it all. Can you guess when the Fed released their statement?
That was a 2.7% drop for the dollar index during yesterday’s session -- its worst one-day performance since 1971 when the index began. (The index was created in lieu of any solid backing for the dollar under the Bretton Woods exchange rate system. Then-President Nixon, the imperial president, dismantled Bretton Woods on Aug. 15 of that year, blaming a run on the dollar on “international speculators.”)
No comments:
Post a Comment