The dollar could continue rallying until the end of the global economic slowdown and growth starts to accelerate again, according to Citigroup Global Markets Inc.
Until this happens, the dollar is the now obvious safest haven, as it offers a yield premium over its global rivals and peers. \u201cWhat we think is needed for a dollar top is a bottom in global growth,\u201d the strategists said adding that \u201cthere needs to be a narrative shift in order to change the trajectory of the dollar\u201d.
One major question in the market now is when the current surge in the world\u2019s reserve currency will end. The Dollar Index climbed more than 18% this year, heading for a record annual gain since 1972.
Dollar strength was a major topic at gatherings of finance chiefs and central bankers in Washington this week as the soaring dollar adds to economic challenges facing governments after US Treasury Secretary Janet Yellen said, this week, the dollar\u2019s strength is the \u201clogical outcome\u201d of different global monetary policy stances.
A decision by Fed to slow rate hikes cannot convince investors to sell the dollar, according to Citigroup. An improvement in the global growth expectations is key as this has been the main driver of the dollar\u2019s past reversals, particularly in the last two decades.
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The dollar could continue rallying until the end of the global economic slowdown and growth starts to accelerate again, according to Citigroup Global Markets Inc. Until this happens, the dollar is the now obvious safest haven, as it offers a yield premium over its global rivals and peers. \u201cWhat we think is needed for a …<\/p>\n","protected":false},"author":13,"featured_media":62119,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[9926,7604,7808,6885,8143,8367,7485],"class_list":["post-74037","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-citi","tag-dollar-index","tag-economic-slowdown","tag-fed","tag-interest-rate-hikes","tag-us-dollar","tag-yellen"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=74037"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74037\/revisions"}],"predecessor-version":[{"id":74045,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/74037\/revisions\/74045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/62119"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=74037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=74037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=74037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}