Reported about 1 year ago
Amid a slowdown in US economic data, the strong US dollar has eased slightly, but remains supported by interest rate differentials compared to other non-US currencies as the US economy is deemed more stable overall. Forecasts indicate the dollar will continue to fluctuate at high levels throughout the summer of 2024, maintaining its strength even if the Federal Reserve initiates rate cuts, as these are expected to be modest. The article also highlights the widening economic growth and rate gap between the US and its trade partners, leading to the US dollar's resilient trend. Various banks anticipate the dollar will stay strong until the Fed's rate cuts, predicted around September, keeping pace with or ahead of other major central banks like Switzerland, Sweden, and Canada, thus supporting its robust trajectory.
Source: YAHOO