USD Still Dominates Major Currencies
Gloria Van Rees
The USD is strong. Every time the dollar shifts down cue the financial press looking for an angle to highlight any dollar weakness, but the truth can be seen in the figure below. Every other major currency is negative against the dollar in YTD trading. Hong Kong Dollar and Mexican Peso are the only two in the positive, up .29% and .04% respectively. The average rate against the USD in down -6.37%. Late summer indications of USD losing strength, decreasing to 93.9 on the dollar index as of September 25. Yet, in contrast to other currencies trading against it, the dollar is still the dominant currency. However, we do believe with the Fed raising rates, this will put more upward pressure on the USD.