The dollar index regained ground on Friday, touching a one-week high of 91.60, as investors cheered new signs that a reopening economy is driving growth. The University of Michigan's consumer sentiment came above market expectations while jobless claims fell to a new pre-pandemic low. On top of that, markets shrugged off Thursday's high US inflation data, digesting the Federal Reserve's narrative that it is likely to be a temporary blip and because of supply and demand imbalances. Investors now turn their attention to the Fed's monetary policy decision next week, expecting that the central bank will continue to remain ultra-accommodative until the economy has further recovered. As a result, the US currency rose almost 0.5% this week, notching its second consecutive week of gains.
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 June 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.