The dollar index lost significant ground this week, moving away from the 92 area to break below 91.50 for the first time in a month. The market moves came in tandem with a further retracement in Treasury yields, which bottomed around monthly lows of 1.55%. On top of that, the ongoing outperformance of the US economy failed to offer lasting support. A slew of data releases in the US calendar, including upbeat retail and jobless claims data, drove investors into riskier currencies, such as the New Zealand and Australian dollars. Aside from the economic indicators, the Federal Reserve’s insistence that it will keep financial conditions as lenient as possible until the US economy heals from the effects of the coronavirus pandemic seems to be making it difficult for the greenback to attract new investors.
Historically, the United States Dollar reached an all time high of 164.72 in February of 1985. United States Dollar - data, forecasts, historical chart - was last updated on April of 2021.
The United States Dollar is expected to trade at 96.06 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 97.33 in 12 months time.