Battered Dollar Has Scope to Rebound to New Highs as Risks Swirl
- ‘Inflationary pressures are still quite firm,’ CIBC’s Rai says
- BMO’s Anderson sees prospect for shocks that might buoy dollar
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The dollar’s best days might still be ahead of it.
While the greenback has tumbled as riskier assets have rebounded and demand for havens has ebbed, there’s potential for renewed political and economic risks to rekindle its strength. Add to that a dire outlook for Europe and prospects for even more policy tightening by the Federal Reserve, and there’s scope for the US currency to bounce back and eclipse the highs it reached in mid July.