Dollar Hovers Near 18-Month Peak as Analysts Debate Next Move
The US Dollar Index traded near 102.2 early Monday, close to an 18-month high reached last week. Market caution has increased amid Middle East tensions and ahead of important US inflation figures. Analysts are split on whether the dollar's rise will stop at a long-term trendline or continue a multi-year uptrend.
The US Dollar Index stood near 102.2 early Monday, not far from an 18-month peak touched the previous week. Caution has increased because of Middle East tensions and ahead of important US inflation data.
Views differ on what comes next. Some analysts see a long-term trendline as a possible stopping point, while others expect the multi-year uptrend to continue.
A firmer dollar could affect households, travelers, importers, exporters, and borrowers with dollar-denominated debt. It may make US imports cheaper and exports more expensive, while emerging-market repayments could become harder. If upcoming inflation figures alter expectations, currency values and borrowing costs may shift, leaving businesses and consumers to manage greater uncertainty.