Skip to content
Subscriber Only

Dollar Luster Dims for Investors Managing More Than $1 Trillion

  • Amundi, Axa expect greenback gains against euro to slow
  • Bloomberg survey shows U.S. currency advancing 3.4% in 2016

The dollar’s unprecedented run against the euro over the past 18 months is set to run out of steam in 2016, according to two of Europe’s biggest money managers.

Following a 26 percent advance in the span, Amundi SA and Axa Investment Managers say the dollar’s strength will constrain the Federal Reserve’s ability to boost borrowing costs aggressively next year, after it raised rates this week for the first time in almost a decade. Strategists surveyed by Bloomberg forecast gains in the U.S. currency will slow to 3.4 percent against the euro in 2016. The year-end median forecast of $1.05 shows little conviction that the dollar will be able to strengthen past $1.0458, the 12-year high reached in March.