by Justin Spittler
The U.S. dollar just closed its worst quarter in five years.
The dollar is the world’s most important currency. Every major financial institution and central bank in the world holds dollars. The dollar makes up 64% of all global currency “reserves,” or currency held by central banks.
Because of its huge importance, small moves in the U.S. dollar can have an outsized effect on asset prices around the world. Think of it like the “butterfly effect,” an idea in science that a butterfly flapping its wings could theoretically alter the path of a hurricane.
Last quarter, the U.S. dollar index fell 4.2%, its worst quarter since 2010. This created major ripples around the world…