Dollar Has Scope to Climb Another 5% If Conditions Tighten More
- Standard Chartered’s Englander sees scope for dollar to rise
- Financial conditions and currency have been ‘tightly linked’
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The US dollar has scope to rally as much as 5% more if financial conditions tighten enough on the back of Federal Reserve interest-rate hikes, according to Standard Chartered strategist Steve Englander.
The performance of the Bloomberg dollar index -- which is up more than 10% over the past 12 months and trading close to its strongest level since early 2020 -- has been “tightly linked” with financial conditions over the past year, according to the bank’s head of global Group-of-10 foreign-exchange research and North America macro strategy.