Currencies

Fed and Trump Trade Drive Dollar to Best Quarter Since 2016

  • Fed’s hawkish signal on rates helped rally hit two-year high
  • Currency supported by peers’ weaker economies: Manulife
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The dollar is headed for its best quarter since 2022, with the currency climbing to a two-year high this week as a resilient US economy and a hawkish Federal Reserve outlook have bolstered its appeal.

The Bloomberg Dollar Spot Index has gained 6% since the end of September. It came under pressure on Friday, falling 0.6% after fresh data showed the Fed’s preferred measure of underlying inflation came in cooler than expected.