Dollar Strength Persists Amid High Yields and Tightening Fed Policy

The US Dollar (USD) is expected to continue its upward trend in the coming months, according to most bank analysts.

This is due to several factors, including high US Treasury yields, strong US data, and monetary tightening by the Federal Reserve (Fed).

Analysts at major banks such as ING, OCBC, and Rabobank expect the Fed to hike interest rates between three and four times in the next 12 months.

This would further support demand for the USD, which is already showing a 1.8% monthly gain.