By Yasin Ebrahim
Invesing.com – The dollar deepened its plunge on Tuesday, amid worries the greenback has climbed too much too fast at a time when safe-haven demand appears to be dwindling as government-imposed lockdown measures are seemingly slowing the pace of infection.
The number of fund managers who consider the U.S. dollar to be overvalued rose at the fastest pace in seven-and-a-half years in April, according to Bank of America's (NYSE:BAC) monthly investor survey.
About 58% of fund managers believe the dollar is overvalued, up 22% points since March, the largest monthly rise since August 2012, according to the survey.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.47% to 98.88.
The greenback has also been hampered by efforts from the Federal Reserve, which many see as weakening the dollar to support the economic fallout from the coronavirus outbreak.
The Federal Reserve balance sheet has jumped to a record $6.13 trillion this week, Reuters reported.
Rising hopes the U.S. economy will restart has weighed on sentiment for safe havens like the greenback, which had surged weeks earlier when many were predicting a prolonged shutdown.