The dollar has shown a compelling strengthening, riding the wave of a seven-week rally. This has cast doubts on predictions about its potential weakening. New trends in the global currency market, especially given the fall of the euro, yuan, and yen, indicate possible pressures on other major currencies, bolstering the dollar’s position. Particular attention is paid to the economic situation in China.
Such growth of the dollar is backed by high interest rates in the U.S. and an unprecedented yield of 10-year Treasury bonds, which recently hit a 16-year record. Many leading market players agree with this, anticipating further strengthening of the dollar.
All in all, experts haven’t reached a consensus regarding the future of the dollar. However, considering current market trends and the policy of the U.S. Federal Reserve System, we can expect the dollar’s reinforcement on the global stage in the near term.
