Dollar bears hold outlook amid rising war inflation
FX strategists in a Reuters poll expect the U.S. dollar to weaken later this year despite current inflationary pressures from high oil prices. While the Federal Reserve may hold rates steady due to rising costs, analysts remain optimistic that a potential end to the Middle East conflict will eventually weigh on the greenback.
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FX strategists expect the United States dollar to remain range-bound before weakening later this year as investors bet on a resolution to Middle East conflict. The dollar has tracked risk sentiment since the conflict began three months ago, rising on escalation and slipping as tensions eased. An initial short-covering rally has left traders net long, with the dollar up about 2%.
