Dollar Resilience: Hawkish Fed Rhetoric Trumps Global Risk Sentiment

The US Dollar remains strong following a hawkish Federal Reserve interest rate decision and ongoing hawkish rhetoric from Fed officials.

Despite improved global risk sentiment, which has tempered safe-haven demand, front-end US yields remain firmly anchored.

Market strategists foresee continued underlying strength for the Greenback through year-end, citing the US economy's growth outperformance relative to major peers and Federal Reserve officials' warnings of further monetary tightening.

According to OCBC, the US Dollar has shown notable resilience despite a broad-based improvement in risk appetite driven by tech gains and falling energy prices.