Dollar plunges 7.4% in past six months — what it means

The U.S. dollar has been in quick decline over the past several months, one of several indicators raising fears that the economy could be headed for a recession.

Since a recent peak in early November, the greenback has fallen by 7.4%, according to the nominal broad U.S. dollar index. The falling dollar comes after a yearlong period of the Federal Reserve hiking interest rates in response to the country’s rip-roaring inflation.