The dollar index traded near the flat line at 92.3 on Monday, remaining close to levels not seen since May of 2018, after a 1% decline in the previous week. The dollar is on track to lose 1% on the month, the worst August month in 5 years and the fifth straight monthly drop, the longest monthly losses since 2017. Last week, the Fed announced a shift in its monetary policy framework, allowing a more flexible inflation target, which means rates can stay low for a longer period despite rising inflation. Also, concerns about the US economic recovery and whether US lawmakers are able to strike an agreement on a new coronavirus relief package have been waiting on the dollar.
