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September 8, 2023
10:49 a.m
Analysts: The strength of the dollar is well-established and difficult for major currencies to overcome
Currency experts polled by Reuters said: The dollar’s strength is well established, and it will be difficult for most major currencies to overcome it until the end of the year, but they indicated that the risks surrounding their expectations for the dollar tilted towards the upside.
The dollar remained strong against most of the major currencies despite some bouts of decline, supported by a strong economy and rising US Treasury bond yields, which are among the highest among developed countries.
The dollar recovered as a safe haven, and reached its highest level in six months, prompted by concern about the growth of the Chinese economy and the global economy, which negatively affected risk appetite, and reinforced expectations that the Federal Reserve (the US central bank) would keep interest rates high for a longer period, and compensated for all its losses. About halfway through the year, it has now risen by one percent since the beginning of 2023.
And 81 percent of analysts, or 43 out of 53 respondents to additional questions, said that the risks surrounding their outlook for the dollar are to the upside; This is in the poll conducted by Reuters from the first to the sixth of September.
According to the average opinion of about 70 currency strategists, the dollar is expected to decline to a limited extent against most of the major currencies within a year, and most of this will not happen until next year, with the approach of the first rate cut by the US Central Bank.
The poll predicted that the euro, which has only risen this year by 0.13 percent, will trade up 1.7 percent at $1.09 in three months. This expectation has not witnessed any significant change from a survey conducted in August.
As for the Japanese yen, which has fallen 11 percent so far this year against the dollar, it is expected to recoup most of the year’s losses to trade at 132 against the dollar in the next 12 months. On Wednesday, it traded at 147 against the dollar. (Reuters)
2023-09-08 06:49:48
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