Dollar’s (USD) Terrible Month Is Boon for Major Currencies Elsewhere

The proximity of Federal Reserve interest-rate cuts is tormenting the US dollar this month, sending the world’s reserve currency slumping and igniting rallies in major peers across the globe.

The Bloomberg Dollar Spot Index has slumped almost 2% in August so far, heading for its worst monthly loss this year. That’s fueled rallies in nearly all major exchange rates tracked by Bloomberg — including gains of at least about 4% in the higher-risk New Zealand dollar and Swedish krona, along with the safe-haven Swiss franc.