BENGALURU—The U.S. dollar will reign supreme for at least another 3–6 months, a Reuters poll of strategists found, saying it will take a significant change in market expectations for Federal Reserve rate hikes to push it higher. Indeed, while the dollar was not expected to make any significant headway from current levels, it was forecast to hold onto most of its impressive gains from 2021, according to the Jan. 31-Feb. 2 Reuters poll. Multi-decade high inflation in the United States and swathes of the rest of the world has prompted the Fed and other central banks to dial back some of the stimulus measures enacted during the COVID-19 pandemic. That sudden change in policy expectations sent equity prices into a tailspin last month, with the benchmark S&P 500 index marking its worst start to the year since the financial crisis. U.S. Treasuries have also taken a pasting, with yields rising …
Dollar to Stay Dominant, but Big Fed Push Needed to Climb Higher: Poll
February 3, 2022
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