What's happening: Political instability often weighs on currencies around the world, and the violence incited by President Donald Trump is unlikely to bolster confidence in the US dollar at a moment of weakness. Eurasia Group, the political risk consultancy, called out a divided United States as the top risk for 2021. The primary driver is faith in the global recovery thanks to the rollout of Covid-19 vaccines. When the United States and the global economy are powering ahead, the dollar — a safe-haven currency — tends to weaken. The big question, though, is whether political chaos will feed a longer-term erosion of faith in the US dollar, the world's preeminent reserve currency.

Source: CNN January 10, 2021 14:01 UTC