The relentless rally by the U.S. Dollar in 2022 devastated foreign currencies, chewed up multi-national corporate profits and handed investors one of the best trending trades of the year. And even though the greenback has struggled since late September, recession concerns may keep it elevated in 2023.
At its peak on September 28, the U.S. Dollar stood at its highest level against a basket of major currencies in nearly twenty-years after rising about 20%. However, those gains have been roughly cut in half as investors bet the Federal Reserve is edging closer to slowing the pace of its rate hikes that helped fuel the greenback’s earlier gains.
At its peak on September 28, the U.S. Dollar stood at its highest level against a basket of major currencies in nearly twenty-years after rising about 20%. However, those gains have been roughly cut in half as investors bet the Federal Reserve is edging closer to slowing the pace of its rate hikes that helped fuel the greenback’s earlier gains.