Fed repricing is driving USD higher. Although it is difficult to go against dollar strength at present, economists at ANZ Bank still expect dollar strength to wane later in the year.

Peak dollar in questiom

“The USD is set to stay strong in the near-term and could even overshoot as the US Fed hikes aggressively and risks to the global growth outlook rise.”

“We still see dollar strength waning later in the year as US inflation finally peaks and the Fed reverts to smaller hikes or even contemplates a pause.”