The US dollar is at a three-month low.
On Wednesday, the dollar index fell for a second day, falling by more than 1% to as low as 94.13, its lowest point since mid-January.
The dollar’s slide continues after the ADP report showed that private payrolls grew by 169,000 last month, below expectations for a gain of 200,000. The report for March was revised lower to 175,000 from 189,000.
And on Tuesday, the dollar weakened after the Commerce Department reported that the trade deficit grew to a six-year high of $US51.4 billion in March.
The dollar is also weakening against its major peers. The Euro crossed $US1.13 today for the first time since late February.
The dollar has staged a huge rally over the past few months on speculation that the Fed will raise rates soon.
The ‘long-dollar’ trade, or bet that the dollar will continue to rally, has been one of the most popular trades. But it seems to be on pause for now.
Here’s a chart showing today’s drop: