The US dollar continues to face heavy selling pressure this week, falling below 90 for the first time since April of 2018 as prospects of additional stimulus in the US and hopes of a vaccine-led recovery have been spoking investors away from safe haven assets. US policymakers are nearing a deal on around $900 billion coronavirus-aid, that would include a second round of direct payments to Americans struggling amid the pandemic. This unprecedented spending is leading to large budget and current account deficits and has made the dollar an increasingly unattractive investment. At the same time, a less dovish stance from the Federal Reserve failed to bring back investors' interest. The Central Bank did not change the terms of its asset purchase program and painted a rosier growth outlook for 2021, but noted that fund rates are poised to be near zero thought at least 2023.
Historically, the United States Dollar reached an all time high of 164.72 in February of 1985. United States Dollar - data, forecasts, historical chart - was last updated on December of 2020.
The United States Dollar is expected to trade at 96.06 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 97.33 in 12 months time.