Benzinga · Jul 13, 2023
Cash In On The Crashing Dollar: 5 Stocks And ETFs Ready To Soar From The Greenback's Downfall
The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), dropped below the key 100 mark on Thursday, plunging to its weakest levels since April 2022, as softer-than-expected consumer and producer inflation encouraged traders to scale back bets of more than one rate hike by the Federal Reserve this year. Consumer price inflation fell to 3% year on year in June, the slowest rate since March 2021, a full percentage point lower than in May and well below the predicted 3.1%. In June, producer inflation fell to a negligible 0.1% year-on-year, the lowest reading since August 2020 and considerably below the predicted 0.4%. The dollar came under pressure following a steep decline in U.S. Treasury yields, with the policy-sensitive two-year Note yield falling 20 basis points to 4.66% in the previous two sessions. The value of the dollar, as gauged by the DXY index, has dropped 4% since the beginning of the year and 13% from its all-time high reached in September 2022. The dollar has suffered even greater losses versus emerging-market currencies, such as the Mexican peso (MXN) and the Chilean peso (CLP), which are up 20% and 18%, respectively, since their lows in 2022. Chart: US Dollar Index Falls To 15-Month Lows
