Dollar at a crossroads as yields rise and policy ambiguity grows
Despite a year-to-date gain, strategists warn the dollar faces headwinds from softer U.S. data, higher fiscal risk, and unclear Fed policy; the link between yields and dollar strength may weaken as investors question the underlying drivers, while the Fed’s FIMA facility and potential stock pullbacks could push flows toward Treasuries, keeping the dollar vulnerable or range-bound.
