Cooling U.S. inflation is accelerating a decline in the dollar, and risk assets around the world stand to benefit.
The dollar is down nearly 13% against a basket of currencies from last year’s two-decade high and stands at its lowest level in 15 months. Its decline quickened after the U.S. reported softer-than-expected inflation data Wednesday, supporting views that the U.S. Federal Reserve is nearing the end of its interest rate-hiking cycle.
Because the dollar is a linchpin of the global financial system, a wide range of assets stand to benefit if it continues falling.