US Dollar Slides, Headed for Worst Monthly Drop in a Year
• The US dollar is heading for its worst monthly decline in a year, falling 3.7% against major currencies • A weaker dollar benefits countries reliant on commodity imports and emerging markets with dollar-denominated debt • Signs the US economy is slowing convinced investors the Fed will stop hiking rates and may soon cut them • Analysts expect more dollar weakness in the first half of 2023, but see it regaining strength later as geopolitical risks increase • A weaker dollar is bad for American consumers and exporters as it increases prices of imports and vacations abroad