by Rahul Karunakar
BENGALURU (Reuters) – The dollar’s dominance will slowly melt away over the coming year on weakening global demand and a sombre U.S. economic outlook, according to a Reuters poll of currency forecasters whose views depend on there being no second coronavirus shock.
Despite fears a surge in new COVID-19 cases would delay economies reopening and stymie a tentative recovery, world stocks have rallied – with the S&P 500 finishing higher in June, marking its biggest quarterly percentage gain since the height of the technology boom in 1998.
Caught between bets in favour of riskier investments, weak U.S. economic prospects as well as an easing in the thirst for dollars after the Federal Reserve flooded markets with liquidity, the greenback fell nearly 1.0% last month. It was its worst monthly performance since December.