Dollar Strength Seen Through End of Year Before Yen Rebound

The US dollar is expected to retain its strength in the coming months before weakening later this year, according to a Reuters poll of FX strategists.

About 95% of respondents said that Japanese yen interventions alone would not sustainably curb the currency's weakness, and nearly every respondent who agreed also stated that the Bank of Japan would have to raise interest rates to make a lasting impact.

The Federal Reserve may need to raise interest rates sooner rather than later to contain inflation pressures stemming from the US-Israeli war with Iran, which could mean the dollar's 2% rise this year holds for a while.