By: Russ Koesterich
Harvest Exchange
May 31, 2017

Don’t read too much into the dollar’s decline

If the back half of 2016 was the mirror image of its first half, then 2017 is shaping up to be something in-between. Equity and credit markets continue to grind higher but the composition of the rally has changed. Value and small caps are lagging while growth and yield-generating stocks are back in vogue. Outside of equities, things also look different. Long-dated bond yields have reversed lower, while the U.S. dollar has given up all of its post-election gains. See the chart below.

Originally Published at: Don’t read too much into the dollar’s decline