When the dollar fell, the traditional view that the return on investment in the dollar was higher than that in many other countries was questioned. Bond investors such as AlexandraScaggs, Barron's Weekly, must be concerned about the total yield, not the yield. In a recent report, BCAResearch strategists pointed out that if the dollar falls as expected, there will be great changes, which will have a huge macroeconomic impact on trade, capital flows and world stock markets. These effects will only happen in time, but for investors of global government bond funds, the RMB may come soon. The income of these funds mainly depends on the exchange rate of the fund manager, the investment location and whether the exchange rate risk is hedged.

Scaggs exchange rate changes may lead to differences in total returns. In addition, small changes in exchange rates can accumulate a lot, because global central banks have lowered interest rates below zero. For example, comparing the 30-year bond yields of Germany and the United States, at first glance, the annualized rate of return of American bonds 1.2430 seems to be much better than that of German bonds -0.08%. However, considering that the exchange rate of the euro against the US dollar has become stronger,

As a major currency, the US dollar fell in new york's foreign exchange market. The disappointing decline in the US dollar index and the yield of US Treasury bonds put pressure on the US dollar. The manufacturing index released by Institute of Supply Management (ISM)34 this month is 60.7, which is lower than 64.7 in March and the highest level since 1983+02. Since the end of February, the US dollar index has risen sharply on April 30th last weekend, but Shawn Osborne, chief foreign exchange strategist of Scotiabank, reflects the broader recovery of the appreciation of the US dollar. "This week, we need to significantly increase the dollar to support the recovery of the dollar, but it was not ideal at first." Federal Reserve Chairman Powell said yesterday that the US economy is improving, but "it is not out of danger".

The euro has appreciated against the dollar. The IHS Markit Eurozone Manufacturing Purchasing Managers Index (PMI) was revised to a record high in April, supporting the euro. Dejindos, vice president of the European Central Bank (ECB), said that if novel coronavirus's vaccination progress and economy accelerate, emergency relief measures will be phased out. This week, the April employment data released by the United States on July 7 and the decision-making meetings of banks in Australia, Britain and Norway have attracted much attention.