Dollar Rally Springs Eternal as Winter Abates, BofA’s Woo Says
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The dollar is poised to rally and Treasury yields to rise in the second half of March as the U.S.’s third-most severe winter in 50 years abates, Bank of America Corp. said today in a report.
Even as investors have attributed weakness in economic data to cold weather, “doubts have started to creep in” and traders have reduced bets that the greenback will gain against the yen, the company said. The “risk-reward” of wagering on a dollar rally versus the yen and an increase in Treasury yields “has improved,” Bank of America said.