AEP: US Dollar Plunges as World Plays Dangerous Game of Pass the Parcel

by Ambrose Evans-Pritchard

The US dollar has plunged to a 16-month low in the latest wild move for the global financial system, tightening the currency noose on the eurozone and Japan as they struggle to break out of a debt-deflation trap.

The closely-watched dollar index fell below 92 for the first time since January 2015, catapulting gold through $1300 an ounce in early trading and setting off steep falls on stock markets in Asia and Europe.

The latest data from the US Commodity Futures Trading Commission shows that speculative traders have switched to a net “short” position on the dollar.

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