The dollar’s malaise has upended its traditional relationships with stocks and bonds. — Reuters
ALL three major US asset classes – stocks, bonds and the currency – have had a turbulent 2025 thus far, but only one has failed to weather the storm: the dollar.
Hedging may be a major reason why Wall Street’s three main indices and the ICE BofA US Treasury index are all slightly higher for the year to date, despite the post-’Liberation Day’ volatility, while the dollar has steadily ground lower, losing around 10% of its value against a basket of major currencies and breaking long-standing correlations along the way.
