“For the US dollar to start weakening, we need the Fed to be more concerned about growth than inflation, and we are far from being there yet,” he writes.
The US dollar is likely to continue in strength until the US Federal Reserve (Fed) pivots and concerns about European energy security and slowdown in Chinese activity ease, says Bank of Singapore’s currency strategist Sim Moh Siong.
In a report dated Aug 26, Sim says that hopes of a “dovish” Fed pivot have waned, with Fed officials alarmed at the prospect of looser financial conditions, continuing to “push back” against the view of a 2023 easing cycle.
