History Suggests a Dollar Rally in the Second Half, BofA Says
- Recovery cycle is set to send greenback soaring: Ben Randol
- Dollar has outperformed most Group-of-10 peers this year
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The U.S. dollar is poised to rally even more strongly than Bank of America Corp had expected in the second half, the firm said, citing “historically exceptional” market and economic conditions.
The recovery from Covid-19’s economic shock has yielded stronger equity and commodity rallies and faster inflation than after previous recessions, senior foreign-exchange strategist Ben Randol wrote in a note on Monday. While share prices may now weaken, robust fiscal expansion will probably lead to tighter monetary policy, suggesting broader dollar appreciation.