Analysts Expect Dollar to Remain Strong Over Next 6 Months, Fed Raises Interest Rates

Analysts Expect Dollar to Remain Strong Over Next 6 Months, Fed Raises Interest Rates
Federal Reserve Chairman Jerome Powell testifies during a Senate Banking Committee hearing in Washington on March 3, 2022. Tom Williams/REUTERS
Naveen Athrappully
Updated:

The U.S. dollar is expected to retain much of its recent gains for at least the next six months according to a recent Reuters poll of foreign exchange strategists, which also predicted the currency weakening in a year.

The dollar index has risen by more than 14 percent since the beginning of 2021, with about half of those gains coming in 2022. Most of the strategists polled by Reuters have for years maintained the view that the dollar would weaken. Expectations that the Federal Reserve would resort to the most aggressive monetary tightening in decades have pushed U.S. Treasury yields to their highest level in three years, which contributed to the strengthening of the dollar.

Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
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