The slide of the US currency, driven by inflows into high-yield assets and generally increased hunt for yield is likely to persist for at least another six months, showed Reuters survey of currency strategists.

During the November rally in equity markets, USD declined by 3% and is now down almost 6% YTD. The US currency shows the worst annual performance since 2017. Strong demand for stocks (and, accordingly, reduced demand for USD) in the medium term will be supported by expectations of new fiscal stimulus in the United States and global vaccine distribution.

More than two-thirds of the experts believe that USD will remain in a downtrend at least until mid-2021. The rest believe that the currency will bottom out sometime during this period.

The survey results correlate well with the November Global Equity Survey, which also broadly expect the stock market rally to continue for six months or longer.

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