Investors expect the weakness of the greenback dollar to continue to push everything up in the market, from US stocks to emerging markets and the metal industry by 2021.
This year, the US dollar fell more than 7% against its main competitors due to low US interest rates, substantial fiscal stimulus and rising sentiment on risk assets.
This fall put the US dollar on track for the weakest year since 2017.
According to a survey conducted by Reuters, more than two-thirds of analysts say the dollar will continue to fall at least until mid-2021, as investors continue to shift to more risky assets and seek higher yields.
The weak value of the US dollar will benefit US exporters as it makes their products more competitive overseas. It also makes it more profitable for US multinational companies to convert foreign income into dollars.
However, there are also analysts who expect the US dollar to rise if the Federal Reserve (Fed) tightens their monetary policy earlier than expected.
The currency also tends to strengthen as market volatility increases and investors turn to asset-haven.
