"The dollar tends to weaken when we have a lot of risk appetite, pulling money into emerging markets and what we've seen recently is the Delta variant really shaking up Asian markets and that degree of uncertainty has been amplified by this tapering debate," said Jane Foley, head of FX strategy at Rabobank in London.

Why is the dollar dropping?

The U.S. dollar fell to a two-week low against a basket of currencies on Tuesday, as traders booked profits after a strong March and as a fall in Treasury yields from recent peaks put pressure on the U.S. currency. ... "Treasury yields have played a role in helping the dollar find its footing.

Why is the US dollar so weak 2021?

The US dollar (USD) is volatile. Bank experts predict this will continue to be the case in 2021. Bank experts believe that ongoing uncertainty from the coronavirus pandemic, a tumbling US economy and an increase in USD money supply will keep the USD weaker than other currencies.