Expectations of a continuous rise in the dollar next year for these reasons!
Arabictrader.com – Experts at Rabobank expected that the US dollar’s rise will continue in the coming year, although it is currently trading at its highest level in several decades near 110.80 points.
The experts at the bank added that the dollar’s strength may continue for some time or at least in the first months of next year, especially in light of the fact that the US Federal Reserve is not expected to cut interest rates before 2024, and this strongly supports the continuation of the dollar’s rise during the next year.
Rabobank experts explained that the strength of the dollar depends on further tightening of monetary policy, in addition to economic risks and concerns about global growth, however, the slowdown in economic growth sharply in the United States, slower growth in China, stagnation in Europe, and the decline in strength Purchasing continues to pressure the dollar’s movements.
The bank’s economists continued that currency weakness against the US dollar was a contributing factor to the decisions of many central banks to announce significant interest rate increases this year, and while raising interest rates should provide some protection against currency weakness, it could also undermine prospects for They grow further, so at some point, they risk fueling the safe haven demand for the US dollar even more.
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