Another year of US dollar dominance ahead as the Fed lifts rates

MOST currencies will struggle to make any gains against the United States dollar in coming months, as monetary tightening expected from the Federal Reserve (Fed) will provide the greenback with enough impetus to extend its dominance well into 2022, analysts says.

Nearly two-thirds of 49 foreign exchange strategists polled by Reuters between Jan 4-6 said interest rate differentials would dictate sentiment in major foreign exchange (FX) markets in the near term, with only two concerned about new coronavirus variants.