The dollar index broke above the 105 neighborhood, closing in on its highest level since December 2002, underpinned by the Federal Reserve’s firm hawkish stance and escalating global recession risks. Several Fed policymakers, including Chair Jerome Powell, indicated a strong commitment to bringing down inflation even at the risk of a recession, signaling another 75 basis point rate increase in July. The most pronounced buying activity was against the pound, which tumbled to an over two-year low against the greenback. Sharp gains were also seen against risk-sensitive currencies such as the Australian and New Zealand dollars. The DXY has rallied more than 1% o far this week following a robust performance in the second quarter.
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 July of 2022.
The United States Dollar is expected to trade at 106.22 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 108.29 in 12 months time.