After Fed Hike, Analysts Say US Dollar ‘Only Game in Town’
- Greenback offers better carry and safe-haven appeal: ANZ Says
- Calls for further gains mount even as rally looks stretched
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An extended rally of the dollar has emerged as the central bet after Federal Reserve’s latest policy tightening and hawkish outlook, even as the US currency’s strength looks stretched on some technical indicators, market participants say.
Beyond the greenback, the focus is on the potential resilience in Asian equities and companies with quality cash flows. Chinese stocks may also be in favor as tamed local inflation offers room for authorities to step up monetary easing and fiscal stimulus to prop up a slowing economy.