VOT Research Desk
The US Dollar is expected to make a strong recovery against most currencies next year amid mounting concerns of a US recession, which would rekindle its safe-haven appeal, according to the most recent Reuters poll of market analysts.
Despite its recent loss, the dollar will maintain its near-10% gains this year and trade at current levels in a year.
Of the 51 strategists who responded to a follow-up question, nearly two-thirds, or 33, stated that the larger danger to the dollar for the upcoming month was that it would rise rather than continue to fall.
42 out of 51 respondents, or an overwhelming 80%, believed there was little room for the dollar to rise based on monetary policy.
By the end of February, the euro was projected to depreciate by almost 3% and trade at $1.02. Over the next three, six, and twelve months, the Japanese yen is anticipated to fluctuate between 139.17, 136.17, and 132.67 per dollar, respectively.
Sterling was expected to drop by close to 5% and trade at about 1.16/$ in three months.
Over the next six months, the Chinese yuan was anticipated to remain above the 7.0 level per dollar.
