Economists recently polled by Reuters reveal that the US dollar’s current bearish trend is likely to extend well into 2021, as traders continue to focus on the Fed’s recent dovish signals. At its latest Jackson Hole symposium, the Fed announced a shift in its policy towards boosting employment and maintaining inflation at an average rate of 2%.

The fresh focus on supporting the US economy which has been in a downturn due to the ongoing coronavirus pandemic could force the Fed to keep interest rates at low levels for longer than previously anticipated. A dovish outlook of the central bank and a possible delay in economic recovery are expected to keep the US dollar under pressure against its other major peers.

Since its highs reached in March when the pandemic first began to spread across the world, the Greenback has lost around 10% of its value and has slipped to fresh multi-year lows over the past few weeks. Most economists believe that the period of weakness in the reserve currency could continue into next year as well.

The US dollar has also turned bearish in anticipation of the upcoming presidential elections. In addition, uncertainty about the pace of economic recovery in the country has also been exerting downward pressure on the dollar.