Dollar Dive Fuels Debate About Whether Greenback Has Topped Out
- Bloomberg dollar gauge has fallen 2% from high set last week
- Still too early to say dollar has peaked, HSBC’s Mackel says
This article is for subscribers only.
The dollar’s pullback in recent days is prompting speculation about whether the currency’s march higher is coming to an end. Still, there’s a reluctance to write it off just yet.
After surging by more than 10% this year, the Bloomberg’s dollar gauge has dropped about 2% from last week’s high even as bets for how far the Federal Reserve will raise interest rates have nudged up. A key focus now is US inflation data due Tuesday. While a weak number may see traders trim rate-hike bets, that might not spell doom for the dollar given its haven appeal and a still-hawkish Fed.