THE US Federal Reserve’s (Fed) aggressiveness, in addition to the speed of rate hikes to address inflation, had led to a strong bias towards the dollar. From the start of this year, the cumulative rate hike by the Fed was 300 basis points (bps) to reach 3% to 3.25%. It saw the dollar appreciate by 15.3% as of Oct 25, 2022.
The strong dollar momentum will remain in the the fourth-quarter (4Q) of the year. It will continue to be supported by the rate hikes.
