The dollar index reversed early gains to trade lower at 90.2 on Tuesday as risk aversion sentiment eased after the IMF revised higher its 2021 growth projections for the global economy. However, uncertainty regarding the $1.9 trillion stimulus plan and concerns over disruption to coronavirus vaccine supplies, rising infections and the economic impact of lockdowns in Europe continue to pressure the greenback. President Biden said he is open to negotiating the requirements of the $1,4000 COVID checks but Senate Majority Leader Chuck Schumer said that an aid package is unlikely before mid-March. Also, the Fed will start its two-day monetary policy meeting Tuesday and is expected to reinforce its commitment to a highly accommodative monetary policy and to clarify it won't taper anytime soon.
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 January 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.