UUP - Dollar Climbs: Have Investors Overdone The Dovish-Fed Trade? | Benzinga
The dollar inched higher on Monday as equity markets took a breather from their recent rally, leaving some investors wondering whether dovish calls on U.S. interest rates were becoming stretched.
The dollar index (DXY), a weighted measure of the dollar’s value against a basket of rival currencies, inched 0.3% higher to 103.57. Although still down from its 2023 peak above 107, the index has endured three-consecutive weeks of losses, working in contrast to equity markets which have soared since the end of October.
“We suspect November’s 3% decline was a bit too much. A bounce could lift it back to the 104.70-105.00 before it falls out of a favor again,” said Marc Chandler, chief forex strategist at Bannockburn Global Forex.
Exchange traded funds that track dollar bullish behavior have moved lower in recent weeks, while ...