Last Tuesday, the US dollar index, which measures the currency’s strength against six other currencies, reached 106.26, the dollar’s highest since early November, according to CNN.
At the same time, the value of the US dollar is gradually rising. On Monday, April 22, 1 US dollar was worth 0.94 euros, the highest result in six months.
According to Citadele Bank economist Aleksandr Izgorodin, the value of the dollar is unlikely to exceed the euro this year, but there are possibilities that they will equalize – reach parity.
Photo by N. Žilinskaitė/Aleksandras Izgorodins
“I would think that the dollar could move closer to parity, but whether there will be a breakout, I wouldn’t be sure of that.”
In my understanding, US inflation should continue to slow down and that means there is a bit of a risk that the market is too cautious about a rate cut in the US right now. It is possible that after the forecasts of several inflation indicators published in the near future, everything will turn around again and the market will begin to predict the dynamics of interest rates in the US and the Eurozone in a similar way. So, I think that parity is quite realistic, but above parity is already difficult”, – 15 minutes said A. Izgorodin.
There are several reasons
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