Dollar Expected to Hold Ground Despite Sparse Fed Guidance

The US dollar is expected to hold its ground over the coming months but may weaken in a year, according to a Reuters poll of FX strategists.

The poll found that forecasters remain unconvinced by sparse policy guidance from Fed Chair Kevin Warsh, who has given relatively hawkish remarks recently.

Interest rate futures currently bet on the Fed hiking rates twice this year to tame inflation, which is nearly double the Fed's 2% target.

Currency strategists' forecasts for dollar weakness have barely budged since the August poll, with the euro expected to hold at around $1.16 in three months and $1.18 in a year.