Year-to-date, the US Dollar has been whipsawing from positive to negative on the back of multi-sigma moves in the rates markets. Economists at ANZ Bank expect the US Dollar Index (DXY) to plummet toward 98 by the end of the year.

US growth to slow

“We expect a slowdown in US growth on the back of recent events which reinforce our view of a weaker Dollar this year.”

“A steeper yield curve tends to correlate with a weaker Dollar, especially as interest rate cuts are now being priced in.”

“Our year-end forecast for the US Dollar Index is 98.”