Dollar index hits its lowest level in more than two years

Data: FactSet; Chart: Axios Visuals

The dollar index, which tracks the greenback's value against a basket of currencies, touched its lowest level in over two years.

What's going on: Investor sentiment soared this month — following Biden’s win and prospects of congressional gridlock, possible stimulus, and headway on coronavirus vaccines.

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• Investors shifted into riskier assets — leaving the dollar to fall 2.5% this month.
• The New Zealand dollar, on the other hand, is on track for its biggest monthly gain in seven years.

What they're saying: The worsening pandemic and uncertainty over OPEC+ moves shouldn't cloud the "generally positive risk environment, which has seen around $36 billion worth of portfolio flows returning to emerging markets over the last month — largely at the expense of the dollar,” ING strategists wrote.

• “While more lockdown restrictions may stand to curb U.S. equity markets, the prospect of the Fed being prepared to add more liquidity should limit any dollar upside.”