Dollar Sinks Early Monday Amid Fear of Rapid Growth

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By Jacob Maslow

Dollar in the cloudsThe dollar fell across the board on Monday morning. Investors are fearful that the dollar has risen too quickly, which could affect the Federal Reserve’s inflation goal. Investors also speculate that the Fed will be cautious about raising interest rates at their monetary policy meeting. Since May of 2014, the dollar has risen by 24 percent.

The dollar was down 0.9 percent early Monday morning. The euro, which has been declining, rose 1.1 percent against the dollar.

Initial investor fears will come to a quick resolution as the Fed will have its monetary meeting this Wednesday. Experts agree that the Fed will raise rates soon. Italy’s Ignazio Visco stressed concern that the euro has weakened too quickly, recently falling to a 12-year low.

Investors should not expect the dollar to rise before Wednesday’s meeting.

The USD is not the only currency falling as of late. The Canadian dollar sank last week as well as the euro. The Aussie dollar sank to a six-year low last week as well.

Dollar concerns have not affected the stock market on Monday. The Dow Jones added 190 points early in the day. Analysts state that the USD is rising so quickly simply because the United States economy is growing faster.

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