Skip to content Skip to sidebar Skip to footer

Crack in US dollar strength to spread as economy slows: Reuters poll

BENGALURU, Nov 8 (Reuters) – The dollar’s recent weakness will linger for the rest of the year, according to a majority of FX strategists in a Reuters poll, who also said economic data will be the primary influencer of major currencies for the rest of 2023.

A stronger-than-expected U.S. economy and rising Treasury yields as the Federal Reserve hiked interest rates to curb high inflation provided the dollar with an unassailable edge over its peers.

But renewed expectations the Fed is done with its rate hikes have put the dollar at a disadvantage, with the currency losing almost 2.0% from last month’s peak, leaving the dollar index (.DXY) up around 2% for the year.

Suggesting the current dollar weakening trend has further to go, a near two-thirds majority of analysts, 28 of 45, who answered a separate question said the dollar is likely to trade lower than current levels against major…

Read the full article…