The dollar index edged up to around 95 on Friday but was still heading for its biggest weekly loss in eight months after investors unwound hawkish bets on the US rates outlook. Markets anticipate three Fed funds rate hikes this year with the first one coming in March, but there are signs emerging that the central bank may be more cautious in reducing its balance sheet. The latest data showed retail sales and industrial production unexpectedly declined in the last month of 2021 and consumer sentiment fell in early January to the second-lowest level in a decade and below market expectations. Earlier data showed the inflation rate came in line with forecasts and producer inflation eased slightly.
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 2022.
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.