The US Dollar's Post-Pandemic Gains Hang in the Balance

The US dollar's decline over the past eight months could erase all of its post-pandemic gains, warns Kit Juckes, a macro strategist at Société Générale. Juckes predicts that the greenback could return to its lows from December 2020 due to market expectations of an end to interest rate hikes by the Federal Reserve this year. The shift in expectations has triggered a wave of bearishness towards the dollar, with many analysts predicting further downside. A weaker dollar could benefit US equity prices and ease concerns of a global recession.