Dollar Weighed Down by Softening Against G10 Currencies
Today marks the 55th anniversary of the end of Bretton Woods, an economic agreement that pegged the US dollar to gold and established the World Bank and International Monetary Fund. The agreement was largely a product of power dynamics, with the US holding significant influence as the world's only meaningful creditor at the time.
The collapse of Bretton Woods led to an era of floating exchange rates, which can be volatile. This week has been relatively quiet in the foreign exchange market, but the US dollar is softer against G10 currencies. The euro (EUR) is the weakest, having lost almost 0.9% this week.
The Australian dollar (AUD) and Japanese yen (JPY) have gained, with the AUD recovering to nearly $0.7080 in late European morning activity. The USD/CAD exchange rate has fallen to its lowest level since June 5, approaching CAD1.3885.