AGL 40.02 Increased By ▲ 0.02 (0.05%)
AIRLINK 127.36 Increased By ▲ 0.32 (0.25%)
BOP 6.60 Decreased By ▼ -0.07 (-1.05%)
CNERGY 4.50 Decreased By ▼ -0.01 (-0.22%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.79 Increased By ▲ 0.35 (0.84%)
DGKC 87.54 Increased By ▲ 0.69 (0.79%)
FCCL 32.56 Increased By ▲ 0.28 (0.87%)
FFBL 65.02 Increased By ▲ 0.22 (0.34%)
FFL 10.27 Increased By ▲ 0.02 (0.2%)
HUBC 109.79 Increased By ▲ 0.22 (0.2%)
HUMNL 14.64 Decreased By ▼ -0.04 (-0.27%)
KEL 5.12 Increased By ▲ 0.07 (1.39%)
KOSM 7.50 Increased By ▲ 0.04 (0.54%)
MLCF 41.55 Increased By ▲ 0.17 (0.41%)
NBP 59.70 Decreased By ▼ -0.71 (-1.18%)
OGDC 193.98 Increased By ▲ 3.88 (2.04%)
PAEL 28.37 Increased By ▲ 0.54 (1.94%)
PIBTL 7.80 Decreased By ▼ -0.03 (-0.38%)
PPL 151.90 Increased By ▲ 1.84 (1.23%)
PRL 26.40 Decreased By ▼ -0.48 (-1.79%)
PTC 16.17 Increased By ▲ 0.10 (0.62%)
SEARL 84.00 Decreased By ▼ -2.00 (-2.33%)
TELE 7.68 Decreased By ▼ -0.03 (-0.39%)
TOMCL 35.49 Increased By ▲ 0.08 (0.23%)
TPLP 8.09 Decreased By ▼ -0.03 (-0.37%)
TREET 16.08 Decreased By ▼ -0.33 (-2.01%)
TRG 52.74 Decreased By ▼ -0.55 (-1.03%)
UNITY 26.21 Increased By ▲ 0.05 (0.19%)
WTL 1.25 Decreased By ▼ -0.01 (-0.79%)
BR100 9,953 Increased By 69.4 (0.7%)
BR30 30,908 Increased By 307.7 (1.01%)
KSE100 93,785 Increased By 429.6 (0.46%)
KSE30 29,050 Increased By 119.3 (0.41%)

Rises in US interest rates will probably prop the dollar up over the next 18 months, but its multi-year run higher since 2012 looks to be over, strategists from British bank Barclays said in a note on Thursday. The swifter recovery of US banks and the US economy after the global financial crisis of 2008 have funded a stronger dollar in recent years, firstly against the yen in 2012 and 2013 and then more broadly from the second half of 2014.
But those moves have long been stalling against the euro and the yen, and a downturn in data - and faith in the economic promises of US President Donald Trump's administration - this year have brought the index that measures the greenback's broader strength down from 14-year peaks. "We believe the USD super-cycle of the past five years is over: the cyclical divergence that helped the dollar in these years has likely peaked, not only because of the European recovery, but also because the US business cycle is more advanced than in Europe," Barclays said in an updated global outlook dated June 22.
"Valuations also suggest downside risks over the medium term, though for the immediate future, we expect the dollar to move sideways against major currencies." The bank accompanied the report with new currency forecasts which called for the dollar to weaken by 2-3 percent against China's yuan over the next year and by almost 7 percent against the yen. It forecast the US currency would strengthen to $1.06 per euro at the start of next year, before weakening back to $1.12, close to current levels.

Copyright Reuters, 2017

Comments

Comments are closed.