The U.S. dollar is predicted to remain strong in global currency markets. Forecasters believe it will reach parity with the euro by 2025.
BENGALURU, Jan 8 (Reuters) - The U.S. dollar will tighten its stranglehold over global currency markets with little standing in the way of its remarkable run, and a significant number of foreign exchange forecasters polled by Reuters expect it to rise to parity with the euro in 2025. The greenback (.
DXY), surged over 7% against a basket of major currencies last year, falling just shy of an 8% gain in 2022 - a seven-year high - and driving the euro to the brink of dollar-parity and an over two-year low of $1.02 on Jan. 2. While forecasters in Reuters polls — long proponents of a weaker dollar — were mostly off the mark in their median point-forecasts through last year, additional questions, particularly on risks to those estimates, captured the currency's relentless ascent. Much of that was due to the dollar's near-8% rise in the final quarter of 2024, fueled by sustained, and often unexpected, U.S. economic resilience. A signal from the U.S. Federal Reserve in December that it is in no hurry to cut interest rates further, along with inflation fears rooted in President-elect Donald Trump's proposed tariff and tax policies, only helped to cement those gains. 'We may sound like a broken record, but our view for the next few months is for the dollar to still be quite strong. Even thinking about what potential new policies could be unveiled with the incoming administration – it should be favoring the dollar. In some ways, there's a flavour of 'there is no alternative,' said Paul Mackel, global head of FX at HSBC. U.S. stocks tumbled on Tuesday after upbeat economic data raised concerns that a rebound in inflation could slow the pace of interest-rate cuts Interest rate futures are now fully pricing in only one more Fed rate reduction by end-2025 and wavering on the possibility of a second, compared to speculation the European Central Bank will cut rates by nearly 100 basis points by then. That, coupled with the allure of higher longer-term U.S
DOLLAR EURO CURRENCY FORECAST FEDERAL RESERVE
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canadian Dollar Rethink: Signs of Strength Amidst TurmoilDespite recent weakness, the Canadian dollar shows signs of recovery, fueled by easing trade tensions, a stabilizing economy, and positive developments in the housing market.
Read more »
Oil Prices Slip Amid Dollar Strength and Trump's Panama Canal DisputeOil prices dipped in thin pre-holiday trading as the US dollar strengthened and traders absorbed President-elect Donald Trump's threat to reclaim US control over the Panama Canal.
Read more »
Oil prices ease on surplus concerns, dollar strengthThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Gold Holds Steady Amid Rate Cut Expectations and Dollar StrengthGold prices remained relatively stable despite uncertainty surrounding the pace of future interest rate cuts by the US Federal Reserve. A stronger US dollar is putting downward pressure on the precious metal.
Read more »
Gold Price Forecast: $3,000/oz by 2025 Despite Dollar StrengthKitco News presents insights on gold price predictions for 2025. City Index's Razaqzada maintains a bullish outlook, forecasting a potential surge to $3,000 per ounce despite headwinds from a strong dollar and high yields.
Read more »
Gold Steady Amid Tariff Concerns, Dollar Strength, Investors Await US DataGold price maintained its stability on Wednesday despite the influence of a stronger dollar and rising Treasury yields. This stability was attributed to concerns over potential tariffs imposed by President-elect Donald Trump. Investors are closely monitoring US economic data for clues regarding the Federal Reserve's interest rate policy in 2025.
Read more »