The US Dollar Index (DXY) hit a 20-year high recently. In the view of economists at HSBC, the USD is likely to continue to be resilient.

Fed to continue hiking

“Many central banks have delivered rate hikes to fight inflation. In particular, the Federal Reserve delivered its third straight 75 bps hike in September and signalled further sizeable hikes are likely to follow.” 

“We believe high US yields, weak global growth, and a fragile risk appetite are likely to remain supportive for the USD.”