A look at this year's performance of national currencies

2020 has been a turbulent year for all asset classes. The foreign exchange market, which is usually somewhat stable, is no exception. National currencies have been the most volatile in years as the world grapples with government stimulus programs, new central bank policies responding to COVID-19, and implications of a chaotic U.S. election as well as Brexit negotiations.

In March, following the liquidity exodus in all markets, the U.S. dollar was the strongest in more than three years. The US Dollar Index (DXY), a widely-used benchmark for the international value of the USD, hit the highest amount since January 2017. This was due to multiple reasons: