Central Banks
US Dollar Bears Risk Being ‘Gloriously Wrong’ as Global Rates Fall
- Central banks facing most synchronized easing cycle since 2008
- Dollar has advantages including yield premium, haven status
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The likelihood that central banks are about to embark upon the most synchronized reduction of interest rates since 2008 looks set to support the dollar in its nascent rebound.
Wall Street came into the year betting that virtually every Group-of-10 currency would gain against the dollar on expectations that the Federal Reserve would unleash a series of aggressive interest-rate cuts. Instead, a gauge of the greenback has jumped more than 2% this quarter and the US currency has beaten most of its major peers.